Salary differencesbetween countries can lead to resentment. Both are difficult ‘people problems’to solve.Another less addressedrisk by the industry is employee misconduct. Employee misconduct duringemployment could include, dishonesty, unacceptable behavior with colleagues orclients, or breach of company rules, or behavior outside work which bringsreputational damage to the organization. We can see that each scenario bringsreputational risk to an organization, both internally and externally, and canpotentially result in a financial damage to the business.
The problem is exponentiallymagnified if the business is in the public eye as a result of the conduct,something now more common as a result of issues going viral on social media. Recent Study on ERM in Computer Industry AONPlc.’s computer industry survey report1 shows93 percent of Computer organizations over $1 billion have a formal riskmanager. The industry survey report shows that a structured Risk managementdepartment is present in more than 76 percent of the enterprises. The reportmentions 31 percent of the Computer companies have a Chief Risk Officer (CRO)heading the Risk management department. In Figure1.
2 we see the work-force strength of Risk Management Department present invarious Computer organizations. With the growing importance and visibility ofrisk management, organizations are increasingly including risk related planningto its strategic plan. As we can clearly see to succeed in today’s competitiveand heavily regulated business environment, companies will have to incorporate riskmanagement into all aspects of their operations. In Figure 1.3 we can see that 33 percent of the Computer companies indicateda marginal or significant planned increase in risk management spend/resourcesover the next 12 months. Only four percent of indicated they are planning for adecrease in risk management spend. PART II: AAPL, HPQ and Lenovo Risk Management ProgramsBefore exploring the risk management programs whicheach of these enterprise puts to practice, let’s have a quick overview of thethree companies which we have chosen for this report.Established in 1977, AAPL is the world’s largestcomputer company by revenue.
Its head-office is in Cupertino California. AAPLdesigns, manufactures, and sells personal computers, mobile and media devicesto consumers. Its primary customer base includes small and mid-sized businessesto education, enterprise, and government customers. Its global revenue in 2017 totaled$229 billion2.AAPL is the largest publicly traded corporation with a market capitalization of$870 billion. Figure 2.1 shows AAPL’sglobal sales by region.
HPQwas formed in 2015 after Hewlett-Packard Co. was split into HP Inc. (HPQ) andHewlett-Packard Enterprise (HPE). It is headquartered in Palo Alto, California.HPQ operates in Personal 1 U.
S. Technology& Communications Industry Report www.aon.com/2016-tech-report/attachments/2016-Technology-Industry-Report.pdf2 2017 AnnualReport, investor.apple.com/secfiling.cfm?filingID=320193-17-70=320193