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 of the abovemention points can be a potential reputational risk to an organization.Reputational risk in this case can also potential potentially cause financialdamage to the business. The problem is exponentially magnified if the businessis in the public eye as a result of the conduct, something now more common as aresult of issues going viral on social media. Recent Study on ERM in Computer Industry AONPlc.’s computer industry survey report1 showsninety-three percent of Computer organizations over one billion US dollars havea formal risk manager.
The report outlines that a structured Risk managementdepartment is present in close to seventy-six percent of the enterprises surveyed.The report also outlines that nearly one percent of computer companies have aChief Risk Officer heading the organization’s Risk management department. In Figure 1.2 we see the work-force strengthof Risk management department present in seventy-six percent of the surveyedorganization having a format risk management department. With the growingimportance and visibility of risk management, organizations are increasingly includingrisk related planning to the organization’s strategic growth plan. This furtherimplies that the recipe to success for an organization in an industry which istremendously competitive and exceedingly regularized is to invest in incorporatinga risk management program to foresee every aspect of the organization’soperations. We can see in Figure 1.
3 thatthirty-three percent of computer firms indicated a planned increase (either smallor significant) in risk management spend over the next twelve months. Only fourpercent of the surveyed organizations indicated they are planning for a lower spendor cutting back on their spending in the organizations risk management program. 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.Establishedin 1977, AAPL is the world’s largest computer company by revenue. Its head-officeis in Cupertino California.
AAPL designs, manufactures, and sells computers, potablemobile devices and media devices to consumers. Its main customer base includes businesswhich are small and mid-sized, ranging from education to enterprise, and to governmentsector. 1 U.S. Technology& Communications Industry Report www.aon.com/2016-tech-report/attachments/2016-Technology-Industry-Report.pdf