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 communication and
media devices to consumers. Its consumers include small and mid-sized
businesses to education, enterprise, and government customers worldwide. Its
worldwide revenue in 2017 totaled $229 billion1. 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 Systems and Printing
segments. Its business involves providing products, technologies, software and
solutions to individual consumers, small and medium-sized businesses, and large
enterprises worldwide2. HPQ’s
2016 worldwide annual revenue totaled $48.24billion, net income $2.67billion. In
figure 2.2 we can see HPQ’s
net-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 markets
technology products and services. Its portfolio of products and services covers
personal computers, workstations, servers, storage, and a family of mobile
products, including smartphones and tablets. Key geographic areas where Lenovo
operates include China, Asia Pacific (AP), Europe-Middle East-Africa (EMEA) and
Americas (AG)3.
In figure 2.3 we can see Lenovo’s
revenue distributed by its operational geographies.

AAPL Enterprise Risk Management Program

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
the Board.

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