Salary differencesbetween countries can lead to resentment. Both are difficult ‘people problems’to solve.
Employee misconduct atworkplace is another lesser addressed risk. Employee misconduct would includebut not limited to, dishonesty, aggravated behavior towards fellow workers ordisrespecting organization rules. It can led to reputation risk and if not addressit may also which may also cause monitory loss to an enterprise. Recent Study on ERM in Computer Industry AON Plc. conducted a survey of computer organizations,on the enterprise’s adaptation to the risk management program.
The surveyreport shows bigger organizations, having revenue higher than one billion USdollars, continue to gain, grow and absorb the full advantage of having anestablished risk management department in their enterprise. Although more that seventy-sixpercent of the organizations have adopted this program, only about one percent showedinterest in hiring a fulltime CRO to manage the enterprise’s risk department.We see in figure 1.2, work-forcestrength of the various risk management departments covered in the survey. Significantlypositive results of enterprise risk management is seen as the force driving competitionand profit, making enterprises to adopt risk related planning as part ofenterprise’s strategic growth planning. We also see in figure 1.
3 that thirty-three percent of computer firms indicated aplanned increase in risk management spend over next twelve months. However fromthe report we also see a small fraction are cutting back on the risk budget. PART II: AAPL, HPQ and Lenovo Risk Management ProgramsBefore going deep into discussing various riskmanagement programs that each of these organizations has put to practice, let’shave a quick overview of the three companies which we have chosen for thisreport.AAPL remains as the largest unchallenged computer manufacturingenterprise, its market capitalization is 200 times bigger than its immediate competitor.
APPL was born in 1977 and its head-office is based out of Cupertino, California.APPL’s business involves manufacturing, and selling personal computers (iMac), Mac-book,iPhone, iPad, Apple Watch, networking devices like Airport, and media devices likeHome-pod to its customers. Its main customer base includes corporations,educational institutions, non-profit institutions, and public and government institutions.
In 2017 AAPL’s global revenue reported is $229 billion1. AAPLhas a market capitalization of $870 billion and is today the largest publiclytraded enterprise. Figure 2.1 shows AAPL’ssales by region globally.1 2017 AnnualReport, investor.apple.com/secfiling.cfm?filingID=320193-17-70=320193