Before 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.AAPL is the world’s largest computer company byrevenue headquartered in Cupertino California.
Established in 1977, AAPLdesigns, manufactures, and sells personal computers, mobile communication andmedia devices to consumers. Its consumers include small and mid-sizedbusinesses to education, enterprise, and government customers worldwide. Itsworldwide revenue in 2017 totaled $229 billion1. AAPLis the largest publicly traded corporation with a market capitalization of $870billion. Figure 2.1 shows AAPL’sglobal sales by region.HPQ was formed in 2015 after Hewlett-Packard Co. wassplit into HP Inc.
(HPQ) and Hewlett-Packard Enterprise (HPE). It is headquarteredin Palo Alto, California. HPQ operates in Personal Systems and Printingsegments. Its business involves providing products, technologies, software andsolutions to individual consumers, small and medium-sized businesses, and largeenterprises worldwide2.
HPQ’s2016 worldwide annual revenue totaled $48.24billion, net income $2.67billion.
Infigure 2.2 we can see HPQ’snet-revenue by business unit and also its net-revenue by region globally.Lenovo is China’s largest PC (Personal Computer) Company.Lenovo has two headquarters one in Haidian District, Beijing and another in Morrisville,North Carolina. Incorporated in1993, Lenovo develops, manufactures and marketstechnology products and services. Its portfolio of products and services coverspersonal computers, workstations, servers, storage, and a family of mobileproducts, including smartphones and tablets.
Key geographic areas where Lenovooperates include China, Asia Pacific (AP), Europe-Middle East-Africa (EMEA) andAmericas (AG)3.In figure 2.3 we can see Lenovo’srevenue distributed by its operational geographies.AAPL Enterprise Risk Management ProgramFirst let’s explore AAPL’s approach towards itsEnterprise Risk Management program. AAPL has a robust and structured enterpriserisk management program.
Figure 2.4summarizes some of the key risks AAPL highlights in its 10K and its suggestedmitigation techniques which the organization undertakes to address its riskexposure. Looking at its 10K we can see AAPL’s board has a designatedAudit Committee with primary responsibility of overseeing enterprise riskmanagement program. The Audit Committee monitors AAPL’s significant businessrisks, including financial, operational, privacy, data security, businesscontinuity, legal and regulatory, and reputational exposures, and reviews stepsmanagement has taken to monitor and control these exposures.
Audit Committee isassisted by Risk Oversight Committee consisting of key members of management,including Chief Financial Officer and General Counsel. Reporting structure ofthe Enterprise Risk Management framework is a follows: The Risk OversightCommittee reports regularly to the Audit Committee, which reports regularly tothe Board.