First let’s explore AAPL’s approach towards its
Enterprise Risk Management program. AAPL has a robust and structured enterprise
risk management program. Figure 2.4
summarizes some of the key risks AAPL highlights in its 10K and its suggested
mitigation techniques which the organization undertakes to address its risk
Looking at its 10K we can see AAPL’s board has a designated
Audit Committee with primary responsibility of overseeing enterprise risk
management program. The Audit Committee monitors AAPL’s significant business
risks, including financial, operational, privacy, data security, business
continuity, legal and regulatory, and reputational exposures, and reviews steps
management has taken to monitor and control these exposures. Audit Committee is
assisted by Risk Oversight Committee consisting of key members of management,
including Chief Financial Officer and General Counsel. Reporting structure of
the Enterprise Risk Management framework is a follows: The Risk Oversight
Committee reports regularly to the Audit Committee, which reports regularly to
HPQ Enterprise Risk Management Program
Next let’s take a look at HPQ. We can see from its 10K
that HPQ is exposed to the following key business risk exposures:
v Unable to produce
v Fluctuations in foreign
currency exchange rates.
v Failure to manage
disruptions could seriously harm future revenue.
v Unable to enforce
intellectual property rights.
third-party claims of intellectual property infringement.
v System security
risks, data protection breaches and cyber-attacks.
v Failure to comply
with customer contracts/government contracting.
v Failure to
maintain firm’s credit ratings could adversely affect liquidity, capital
position, borrowing costs and access to capital markets.
changes in tax provisions.
v Terrorist acts,
conflicts, wars and geopolitical uncertainties.