Business Risk Assessment Report: Apple Inc. and Risk Management

This report provides a risk assessment of Apple Inc., a leading multinational technology company. It begins with a definition of risk and then delves into the specific risks faced by Apple, including competition, inventory management, and manufacturing dependencies. The report highlights the strate...Read More

Running head: RISK ASSESSMENT
Risk Assessment
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Risk..............................................................................................................................................2
Apple Inc.....................................................................................................................................2
Risks of Apple Inc.......................................................................................................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

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Introduction
Risk is the possibility of an individual or a situation that involves exposure towards
danger or loss (Glendon, Clarke & McKenna, 2016). Risk can be assessed and evaluated with
proper risk assessment and management procedure.
The report outlines a brief description on the risk assessment. It covers a clear definition
of risk and a detailed research on a recognized organization, Apple Inc. and its risk assessment
(Haimes, 2015). The report also describes about the potential risks of the organization and the
ability to control them.
Discussion
Risk
Risk is the probability of obtaining or misplacing something valuable. It can also defined
as the possibility of a situation or an individual, which includes an exposure towards damage or
danger (Hopkin, 2017). Risk sometimes is the intentional or unintentional collaboration with
uncertainty. Risk however, can be evaluated and mitigated with risk assessment and management
strategies.
Apple Inc.
Apple Inc. is a multinational organization of America that produces electronic devices. It
has headquarters in Cupertino, California and was founded by three entrepreneurs namely Steve
Jobs, Steve Wozniak and Ronald Wayne in the year 1976. Apple Inc. designs, produces and
manufactures computer software, online services and customer electronics (McNeil, Frey &
Embrechts, 2015). It produces hardware products like iPhone smart phones, iPad, iPod, Apple

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Watch, Mac computers, Apple TV and many more. Apple Inc. is one of the largest businesses in
the world. In the 2015, it do faced some of the major risks in its business and organizational
structure. However, these risks are mitigated and solved with proper risk assessment and
management techniques.
Risks of Apple Inc.
Business vertical is a identifiable component of a particular enterprise, which is utilized
in the supply of a service or product that has the risks or returns different from other business.
Apple Inc. Risks are common for any organization (McNeil, Frey & Embrechts, 2015). Apple
faces some of the major potential risks in their businesses. The risks of this organization are as
follows:
i) Competition: The main risk that Apple faces in its business is the massive competition.
There are companies that produce similar electronic products. This creates a major problem for
Apple.
ii) Inventory: Another unavoidable risk for Apple is the shortage in inventory. The
business of Apple is leading the market. Therefore, there always exists a risk of shortage in their
inventory stocks. This can reduce or stop their business growth.
iii) Manufacturing: The Company always depends on the manufacturing of products and
services. Various logistics partners manufacture these products, located even outside of America.
If these partners will stop there manufacturing, Apple Inc. will be in tremendous problems
(Haimes, 2015). There is always a high chance of risk of this particular problem.
The above-mentioned risks clearly define that even after being the leading industry in all
over the world, Apple Inc. has various risks and threats in their business (Hopkin, 2017).

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However, they are constantly mitigating their risks with their amazing risk management
strategies and their business vertical. The business vertical refers to all the components related to
that company for example the government, the financial, commercial, industrial, shipping and
logistics. Apple is able to reduce these risks with proper risk management strategies. They are as
follows:
i) Competition: The risk of competition is reduced by constant alterations and
innovations in the products (Hopkin, 2017). Apple Inc. brings remarkable innovations in their
existing products in almost every year. This makes their products tempting and acceptable by all
customers.
ii) Inventory: Particular systems are installed in the company to check and get the regular
updates of the inventory. This reduces the risk of shortage in inventory stock.
iii) Manufacturing: Local logistics partners are present for the company because, if the
other partners will be unavailable, they can at least manage on immediate basis (Glendon, Clarke
& McKenna, 2016).
The above risk assessment strategies clearly define that Apple Inc. can easily manage
their potential risks in their business.
Conclusion
Therefore, from the above discussion it can be concluded that, Apple Inc. being the
leading manufacturer of electronic products in the world, faces various risks in their business.
However, they are able to control them with proper strategies. The above report gives a brief

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description on the definition of risk, the risks of Apple and their amazing risk assessment
strategies.
References
Glendon, A. I., Clarke, S., & McKenna, E. (2016). Human safety and risk management. Crc
Press.
Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons.
Hopkin, P. (2017). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts,
techniques and tools. Princeton university press.