ENTERPRISE RISK MANAGEMENT PLAN

Running Head: ENTERPRISE RISK MANAGEMENT PLAN
Enterprise Risk Management Plan
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Company Overview...................................................................................................................2
SWOT analysis...........................................................................................................................4
PESTLE analysis........................................................................................................................6
Risk analysis of Apple...............................................................................................................8
Business Risk of Apple..........................................................................................................8
Market Risk of Apple.............................................................................................................9
Competition Risk...................................................................................................................9
Operational Risk...................................................................................................................10
Strategies..................................................................................................................................11
Recommendation......................................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14

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Introduction
The aim of the plan is to conduct an analysis of the factors that are capable of posing
threats in the productivity as well as efficient functioning of the organization. As such the
plan involved in the risk management plan comprises of the process of the organizing and the
processing of the managerial process that should be carried in order to manage the risk those
are detrimental for the organization. The risks can potentially makes it prominence felt in
different areas including the functioning of the organization along with the leading and the
controlling of the organization. The risks can make its prominence felt in the areas including
the finance related risks as well as the strategic and the operational risks those are capable of
diminishing the potentiality of the organization. The analysis of the risk factors allows the
organization to concentrate their focus on several areas by shifting their focus from the less
crucial one. It might also require the organization shift the entire concern in terms of the
organizational culture as well. The concern of the report would be the company Apple where
the both internal and the external analysis of the company would be conducted in order to
distinguish and elucidate the factors creating the risks for the organization. The risks factors
identified in the different spectrums of the organizations and the cost value of the factors
would be scrutinized in order to evaluate the risks that needs to be prioritized with
effectiveness. The would report would also provide strategies that the organization should
take and provide recommendation on the basis of the priority for the organization in concern.
Company Overview
Apple plays the role of the leader in the international market as a manufacturer of the
electronics and software. Along with being the producer of the services mentioned, the
contribution of the company can be noted in other services that it provides to its customers.
The origination had emerged as a global company from the California in USA where the

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organization had placed its base. Ronal Wayne and Steve Jobs that had founded the company
jointly (Bergvall-Kåreborn & Howcroft, 2013).
Beginning as a manufacturer of computer for personal usage the company has
introduced a massive diversification in their product and services. The current time the
company is after the Samsung as a global producer of smartphones. However, in terms of the
revenue generated, Apple has grabbed a leading position in the international market. As such,
the organization operates through approximately 500 retails and involved nearly 120,000
people as its employee (Gupta & Prinzinger, 2013).
Fig: Gain of the Company
Source: Riskhedge
The vision of the company includes providing technology that is not intimidating as
well as user friendly within a low cost. The basic philosophy of the organization is involved

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in its understanding of the fact that the all the users are not expert in computers and the
understanding allows the users to develop a better understanding of the manufacturing
process to generate the electronics that are aiding the users. Therefore, the mission of the
company is to bring an exclusive experience of the customers with their products. In order to
adhere to their policy and comply to their mission the organization has introduced an wide
array of products as enlisted below
1. Mac products of computers in order to provide best experience to the customers in
terms of the personalized use of the electronic device
2. iPad series of tablets
3. iPhone series of smart phones
4. Apple wearable watches
5. Smart TV
6. Online services including the iTunes and Apple music.
SWOT analysis
Strength
1. With a brand value of approximately
$234 million, the organization has
ranked the top position.
2. It has attained a global renounce in
terms of the personalized computers
manufactured with the intent of
providing the customers with an
advanced experience.
3. As the leading brand in introducing
technology that has changed the
scenario
4. The dedication of the organization is
noted in the demand that it has
created by the virtue of its brand
identity.
5. The organization has also invested a
considerable amount of its concern
to the sustainability in the
Weakness
1. One of the primary section of the
companies weakness lies in the area
of high cost that the buyers need to
inculcate towards its product.
2. The limited advertisement that the
organization has indulged in has
even allowed the organization to
establish a set of loyal customer and
brand identity. In comparison to its
competitor, Samsung, Apple has
relatively lesser advertisements in
order to promote their products
3. By expanding the nature of its
services organization has made
considerable amount of initiatives in
order to enter into the market with
their incompetence’s in the domain
they wanted to capture. A notable

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manufacturing of their product. This
concern begins from the production
of their product till their disposal
6. The domain of the company has
been on an increase and
diversification for the past few years.
It can be realized in the contribution
that the services created by Apple
does to its revenue.
example of the same can be noted in
the failure of the Apple map.
4. The weakness of apple also lies in
the company’s software, as the
product is incompatible to other
software. This creates a notable
difficulties for the user to use the
products of apple successfully.
Opportunities
1. The opportunity of the organization
is invested in the continuous growth
of the customer who are increasingly
attracted towards the product and the
services of the organization.
2. The team of Apple is equipped with
the researcher who has continuously
developed the product of the
organization as well as their
services.
3. The distribution system of the
organization has been placed on
wider basis. The company is
equipped with the resources to
expand their distribution network.
The expansive network for
distributing the product has allowed
the organization to earn a
considerable amount of revenue.
4. The opportunity of the organization
is also invested in its ability to bring
about green technology in its
initiative to bring about
sustainability in their product and
services.
5. The opportunity of the organization
is also invested in the wearable
technology that it has introduced in
the market through the smart
watches which has allowed the
organization to attain a militarization
of the experience of the iphone.
Threats
1. A considerable section of the
Apple’s supply chain is dependent
on China. The dependence on China
is also because of the manufacturing
of their products. The current threat
stemming from the Coronavirus
issue has affected the organization in
a considerable way. The impact has
been seen in a disruption of about
32%.
2. The organization is also facing
considerable amount of threats from
the counterfeits. The counterfeits in
the market are utilizing the brand
image of Apple to sell their
products.
As such the organization is
becoming prone to the disruption in
the brand image owing to the
negative publicity.
3. In spite of establishing its brand
image with effectiveness the
organization is receiving
considerable threats from the
competitors like the Samsung, Dell,
Microsoft and the Dell as the
organization has achieved
advancement in terms of the
technological development.
4. There has been a considerable
changes in the market keeping in
concern the operating system that is
used by the different brands. It has
been seen that the operating system
of other brands have occupied the
market with increased efficiency as
compared to the operating system of
Apple.
5. The company has also experienced a

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huge increase in the production cost
as the US has imposed a increased
tariff rates to the products imported
from the Chinese market resulting in
the overall increase of the cost of the
product
6. The company has also experienced
considerable number of lawsuits
action, accounting of about 60. It has
led to the dissatisfaction of the
customers when the company had
announced the throttling of the
performance joined by the usage of
the batteries that have aged over
time was deliberate on the part of the
organization (Insight, 2013).
PESTLE analysis
Political With the income inequality related issues having gained a
forefront, it has resulted in the increase in the corporate taxation.
The impact of the same has been noted in the $34.7 billion
revenue earned by the organization in the respect.
The political as well as social unrest prevailing in the market of
China has been impacting the market of Apple as the organization
is highly dependent on the Chinese market for the manufacturing.
Economical The cost advantages of the company has suffered a loss with the
increase in the labor cost in china that has been the hub of
manufacturing for Apple.
The change in the income of the middle class population in the
developed countries like US has resulted in the decrease in the
market of Apple
The market of Apple in countries like Europe and china has been
made expensive to function with the strengthening of the US
dollar.

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Social It is expected that the coming time would experience a change in
the market of Apple as it would grab the market segment that has
been unaware of the Apple products.
The concern for the ethical aspect of the product has moved about
to limit the appeal of the product among the consumers whoa re
conscious of the ethical attributes
The association of apple with the manufacturing market in China
is potential to disrupt the brand image of the company to a certain
section of their potential customer.
The brand image of the organization can also be tarnished from
the criticism that it has affected in terms of the companies
marketing strategy in marketing Apple music.
Technological Competitors have expressed their capability to duplicate the
product of apple to a greater extent. The impact of the same can
be understood as the organization losing its signature service that
used to act as a crucial point in maintaining its brand image.
The increased usage of the tablets and smartphones on an
worldwide scenario has experienced a lack in the demand for the
personalized computer products.
The operating system also limits the functionality of certain
features otherwise available to the users of androids, which has
potentially decreased the brand image of the organization.
Legal The organization is capable of facing an increased regulations
from the government as the organization has entered the market
with the new service of Apple pay.
The company is also capable of encountering certain level of
litigation as they are entering the market with the attempt to
provide their customers with financial services.
The organizational is highly dependent on the ‘intellectual
property’ related law in terms of the services and the services that
the company is providing. It makes the company vulnerable to the
high cost the organization need to inculcate in preventing their
product from piracy as well as from the litigation.
Environmental The environmental concern for the organization is in terms of the
disposal of the electronic parts that has been used and the usage of
the parts that are non-functioning.
The manufacturing rate of the organization is mostly like to
increase as the its primary manufacturer, China is more likely to
cut down the emission of the greenhouse gases as well as the
usage of fossil fuels. The implication of such cutting down can be
experienced in the increase in the cost that the organization need

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to invest in the usage of the electricity for its production.
There has been a disruption in the supply chain with the
increasing for the transoceanic shipping due to the supply chain of
Apple (Khan, Alam & Alam, 2015).
Risk analysis of Apple
Business Risk of Apple
Apple has emerged from the computer company that had been the initial concern of
the organization and has shifted to its concern to the production of the smartphones in the
market. The introduction of the iPhone in market has increased the stock of the company by a
percentage of 2,037%. In the year 2007, the organization had sold 2.2 billion phones where
the company has ranked over trillion of dollar. A significant amount of the revenue earned by
the company has arrived from its sale of the iPhone. The earning of the company from an
iphone is three times of that of the Mac book (apple.com. 2020).
However, current time has experienced a quality related issues for the product. This
resulted in the services and the products of Apple experiencing quality related issues. The
resultant outcome is the decrease in the sale of the company. It would also impact the margin
by creating a decrease in it and along with that the it has also resulted in the decrease in the
reputation of the company.
Severity
Acceptable Tolerable Undesirable Intolerable
Likelihood
Improbable 1 2 4 7
Possible 1 2 6 10

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Probable 2 4 6 12
Table: Risk Management Matrix
Market Risk of Apple
The global expansion has required the organization to invest in the activities that are
related to the interest rate and foreign countries. The changes in the interest rate has been
seen to impact the income of the organization. As such, the changes in the value for the
foreign currencies directly impact the revenues earned by the organization (McBride, 2019).
The company is also susceptible to the risks incurred by the changing nature of the
exchange rate. As such, the challenge that the company is facing is from the strengthening of
the US dollar, that has increased the income of the organization from the local competitors in
the market (apple.com. 2020).
Severity
Acceptable Tolerable Undesirable Intolerable
Likelihood
Improbable 1 2 3 10
Possible 2 4 8 16
Probable 4 8 10 17
Table: Risk Management Matrix
Competition Risk

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The organization is facing considerable threats from its potential competitors out of
which the Google and the Samsung had successfully increased the competition for the
products of Apples. The lesser cost for the products of the competitors have also increased
the competition to a considerable amount (McBride, 2019).
The organization is facing risk from the counterfeits who are using the brandimage of
the company to come up with duplicate products and thereby tarnishing the brand image of
the company. The brand image of the Apple and the loyal customer base has made Apple a
potential target zone for its competitors (McBride, 2019).
Severity
Acceptable Tolerable Undesirable Intolerable
Likelihood
Improbable 2 6 7 9
Possible 3 7 9 17
Probable 6 10 10 18
Table: Risk Management Matrix
Operational Risk
A considerable risk of the company is potential as a considerable amount of the
company is earned from the functioning of the company in the international market. The risk
of the international operation also stems from the increase in the international regulation.
International operational risk has been contributed by the threat of Coronaviruses that
has disrupted the manufacturing process in china, resulting in a huge amount of cost.

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The risk of the company from the access to the third party property might be
unavailable to the organization in terms of the commercial terms. This can be experienced in
the patent litigation that the company hold with other companies like Samsung (apple.com.
2020).
Severity
Acceptable Tolerable Undesirable Intolerable
Likelihood
Improbable 1 2 2 8
Possible 1 3 7 10
Probable 2 3 7 15
Table: Risk Management Matrix
Strategies
Following the risk analysis matrix, it has been realized that the organization need to
focus on the market related risk and the competition related risk in order to manage them with
increased effectiveness. Another area of risk that the organization need to concentrate its
focus upon is the one of the operation related risk.
The risk management of the organization would include the following approach
1. Avoid: The risk related to the operation related factors where the company has
been blamed for intentionally using used material that hampered the brand image
of the company. This risk can be easily avoided by the organization by expressing
integrity towards the process as well as towards their loyal customer, who not only
invest in their products but also to their services

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2. Transfer- The organization should shift the supply chain related risk stemming
from the coronavirus attack in china to the third parties in order to decrease the
loss in the process.
3. Mitigate- The risks that the organization is receiving from the competitors
imitating the product of the organization by enhancing the integrity of the product
and bring about technological advancement in order to prevent the product from
getting imitated as well user efficient
4. Accept- In terms of the risk that is related to the value of the dollar the
organization need to accept the changes and the related risk and invest in other
areas of concern in order to compensate the loss.
Sustainable Acceptable Feasible
Avoid Yes Yes Yes
Transfer No Yes Yes
Mitigate Yes Yes Yes
Accept No Yes yes
Table: SAF Matrix
Recommendation
1. The mitigation should be carried out with effectiveness in order to maintain the brand
image of the company in the market
2. The communication should be conducted with the third parties in order to shift the
litigation and decrease it to a certain extent

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Conclusion
Following the case of Apple, which has established itself as a leading brand in the
international market of electronics, the market has experienced a considerable amount of
risks from the competitors in terms of the imitation of the products as well as the risk that
they are receiving from the counterfeits. Along with that, the organization has also
received a considerable amount of risks from the strengthening of the dollars as it has
enhanced the expanse the organization had to inculcate in the developing economy of the
country. However, since the only option laying in front of the organization regarding the
dollar related risk, it is suggested that the organization indulges concentrating upon the
mitigation of the competitor related risk that would allow the organization to retain its
brand image.

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References
apple.com. (2020). Apple (United Kingdom). Retrieved 8 March 2020, from
https://www.apple.com/uk/
Bergvall-Kåreborn, B., & Howcroft, D. (2013, December). The Apple business model:
Crowdsourcing mobile applications. In Accounting Forum (Vol. 37, No. 4, pp. 280-
289). Taylor & Francis.
Gupta, A., & Prinzinger, J. (2013). Apple, Inc.: Where Is It Going From Here?. Journal of
Business Case Studies (JBCS), 9(3), 215-220.
Insight, S. M. (2013). SWOT analysis of Apple.[online] Available at: http://www.
strategicmanagementinsight. com/swot-analyses/apple-swot-analysis. html.
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), 955-961.
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), 955-961.
McBride, S. (2019). Half Of Apple’s Business Is at Risk. Retrieved 8 March 2020, from
https://www.forbes.com/sites/stephenmcbride1/2019/12/02/half-of-apples-business-is-
at-risk/#323e75835761