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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 of the above
mention points can be a potential reputational risk to an organization.
Reputational risk in this case can also potential potentially cause 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


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 seventy-six percent of the enterprises surveyed.
The report also outlines that nearly one percent of computer companies have a
Chief Risk Officer heading the organization’s Risk management department. In Figure 1.2 we see 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
sector. Its global

1 U.S. Technology
& Communications Industry Report

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