Salary a result of issues going viral on social

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 breach of company rules, or behavior outside work which brings
reputational damage to the organization. We can see that each scenario brings
reputational risk to an organization, both internally and externally, and can
potentially result in a financial damage to the business. 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

 

AON
Plc.’s computer industry survey report1 shows
93 percent of Computer organizations over $1 billion have a formal risk
manager. The industry survey report shows that a structured Risk management
department is present in more than 76 percent of the enterprises. The report
mentions 31 percent of the Computer companies have a Chief Risk Officer (CRO)
heading the Risk management department. In Figure
1.2 we see the work-force strength of Risk Management Department present in
various Computer organizations. With the growing importance and visibility of
risk management, organizations are increasingly including risk related planning
to its strategic plan. As we can clearly see to succeed in today’s competitive
and heavily regulated business environment, companies will have to incorporate risk
management into all aspects of their operations. In Figure 1.3 we can see that 33 percent of the Computer companies indicated
a marginal or significant planned increase in risk management spend/resources
over the next 12 months. Only four percent of indicated they are planning for a
decrease in risk management spend.

 

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.

Established in 1977, AAPL is the world’s largest
computer company by revenue. Its head-office is in Cupertino California. AAPL
designs, manufactures, and sells personal computers, mobile and media devices
to consumers. Its primary customer base includes small and mid-sized businesses
to 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’s
global sales by region.

HPQ
was formed in 2015 after Hewlett-Packard Co. was split into HP Inc. (HPQ) and
Hewlett-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.pdf

2 2017 Annual
Report, investor.apple.com/secfiling.cfm?filingID=320193-17-70=320193