Salary surveyed organizations. We see in Figure 1.2 the

Salary differences
between countries can lead to resentment. Both are difficult ‘people problems’
to solve.

Another less addressed
risk by the industry is employee misconduct. Employee misconduct during
employment could include, dishonesty, unacceptable behavior with colleagues or
clients, or disrespect of company rules, which brings reputational damage to
the organization. We can see that each of the above mention points can be a
potential reputational risk to an organization capable of causing a financial
damage to the organization. The problem is exponentially magnified 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.

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Recent Study on ERM in Computer Industry


Plc.’s computer industry survey report1 shows
ninety-three percent of Computer organizations over one billion US dollars have
a formal risk manager. The report outlines that a structured Risk management
department is present in close to 76 percent of the companies surveyed. The
report further indicated that computer companies having have a Chief Risk
Officer heading the organization’s Risk management department account for one
percent of the surveyed organizations. We see in Figure 1.2 the work-force strength of Risk management department present
in seventy-six percent of the surveyed organization having a format risk
management department. With the growing importance and visibility of risk
management, organizations are increasingly including risk related planning to the
organization’s strategic growth plan. This further implies that the recipe to
success for an organization in an industry which is tremendously competitive and
exceedingly regularized is to invest in incorporating a risk management program
to foresee every aspect of the organization’s operations. We can see in Figure 1.3 that thirty-three percent of computer
firms indicated a planned increase (either small or significant) in risk
management spend over the next twelve months. Only four percent of the surveyed
organizations indicated they are planning for a lower spend or cutting back on
their spending in the organizations risk management program.


PART II: AAPL, HPQ and Lenovo Risk Management Programs

Before exploring the risk management programs which
each of these enterprise puts to practice, let’s have a quick overview of the
three companies which we have chosen for this report.

in 1977, AAPL is the world’s largest computer company by revenue. Its head-office
is in Cupertino California. AAPL designs, manufactures, and sells computers, potable
mobile devices and media devices to consumers. Its main customer base includes business
which are small and mid-sized, ranging from education to enterprise, and to government

1 U.S. Technology
& Communications Industry Report


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