Comprehensive Risk Analysis: Western Digital Corporation Report

This report provides a comprehensive risk assessment of Western Digital Corporation, a major player in the data storage industry. It identifies key stakeholders, analyzes various risk categories using the PESOTEL framework (Political, Economic, Social, Technological, Environmental, and Legal), and evaluates the effectiveness of current risk controls. The report details specific risk incidents such as political instability, exchange rate fluctuations, wage legislation, and environmental concerns, along with their potential impact and proposed mitigation strategies. It also includes an analysis of the company's stakeholder relationships and legal considerations, offering a holistic view of the risk landscape facing Western Digital. This document is available on Desklib, where students can find a wide array of solved assignments and study resources.

Running Head: Risk Management
1
Project Report: Risk Management

Risk Management
2
Executive summary:
The report explains about the risk position of Western Digital Corporation. It explains
about the various factors of the risk and it also includes the mitigation plan, controlling
factors and likelihood of the risk factor. The report would make it easier for the stakeholders
of the comapny to analyze the position of the company and make better decision about the
performance of the company. It includes the key stakeholder performance of the company,
changes into the position of the company in last 5 years and various other factors.

Risk Management
3
Contents
Company overview...........................................................................................................4
Key stakeholders...............................................................................................................4
Findings and results..........................................................................................................5
Report conclusion...........................................................................................................13
References.......................................................................................................................14

Risk Management
4
Company overview:
Western Digital Corporation is an American company which operates its business in
compute data storage industry. The company is one of the largest manufacturing companies
of hard disk drive in the world. The main competitor of the company is Seagate technology.
The business mix of the company explains the hybrid drives, hard disk, drives and solid state
drives. The total revenue of the company is US $ 19.09 billion according to annual report
(2017). The stock price of the company is USD 90.16 (Yahoo Finance, 2018). The
profitability position of the company explains that the performance of the company has been
better. The key shareholders of the company are Stephen D. Milligan. The governance
structure of the company explains that the main people of the company include executive and
non executive members.
Total number of employees of the company is 67,629 according to the annual report
(2017). The company has been established in April 23, 1970, 47 years back. The competitive
environment of the company is quite attractive as it is the largest comapny in the world and
the company is operating at its business worldwide (Morningstar, 2018). Further, it explains
that the current position of the company is quite attractive and thus the market capital in the
stock price of the company has also been enhanced.
Key stakeholders:
Stakeholders are the people who have interest or concern in an organization.
Stakeholders could affect the organizations actions goals, objectives and the policies. The key
stakeholders of an organization include creditors, Debtors, shareholders, government, owners,
suppliers, unions and the community. Not all the stakeholders are the same and have same
influence in a business.
Key shareholders of the western digital corporation are creditors, Debtors,
shareholders, government, owners, suppliers, unions and the community. The relationship of
the company with the stakeholders could be evaluated as follows:

Risk Management
5
(Aven, 2015)
The study on the stakeholders of the company briefs that the main stakeholders of the
company are the investors and the suppliers of the company. The secondary stakeholders of
the company are its creditors and the debtors of the company and the last stakeholders of the
company are other related parties of the company (NASDAQ, 2018). It explains that the
organization is required to prepare and manage the new strategies and polices on the basis of
their level in the organization (Modarres, 2016).
The current stakeholder’s structure of the company is quite closer to the new policies
and the strategies of the comapny. Though, few new changes would make it easier for the
business to manage and mitigate the risk related to the stakeholders.
Findings and results:
R
i
s
k
Risk
Cate
gory
Risk
Inci
dent
Risk
Desc
riptio
n
Curr
ent
Cont
rols
Compl
iance
Contro
ls/Awa
Lik
eli
ho
od
Con
seq
uen
ce
R
at
in
g
Acc
ept/
Reje
ct
If
Reje
ct -
furt
Lik
eli
ho
od
Con
seq
uen
ce
R
at
in
g
O
w
n
er
Debtors
Creditors Suppliers
Employees
Customers
Stakeholders

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6
N
o reness
her
cont
rols
1 Polit
ical
Polit
ical
insa
nity
Politi
cal
scen
ario
is
alwa
ys a
risk
for
the
com
pani
es as
the
politi
cs
and
gove
rnme
nt of
a
coun
try
coul
d be
chan
ged
at
any
time.
Com
pan
y
has
mai
ntai
ned
eno
ugh
strat
egie
s to
miti
gate
the
polit
ical
risk
(Hai
mes,
2015
).
Organi
zation
should
mainta
in the
policie
s
which
could
not be
affecte
d by
the
politic
al
factor
s.
E Acc
ept - E
2 Polit
ical
Intel
lect
ual
pro
pert
y
prot
ecti
on
Chan
ges
into
the
politi
cal
facto
r
coul
d
impa
ct on
the
oper
ation
s
and
the
prop
erty
of
the
com
pany
.
Com
pan
y
has
cop
yrig
hted
all
the
imp
orta
nt
aspe
cts
of
the
com
pan
y.
Organi
zation
s are
requir
ed to
have
legal
paper
of all
the
activiti
es
A 1 H Acc
ept E

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7
3 Polit
ical
Wag
e
legi
slati
ons
Wag
e
legisl
ation
rules
coul
d be
chan
ged
by
the
gove
rnme
nt of
a
coun
try at
any
time.
Com
pan
y is
follo
wing
the
curr
ent
regu
latio
n of
wag
es.
Organi
zation
should
be
aware
about
the
curren
t
chang
es into
o the
politic
s
(Olson
& Wu
(2017)
A 1 H Reje
ct
Co
mpa
ny
is
also
requ
ired
to
hire
a
lega
l
advi
sor
to
man
age
the
perf
orm
anc
e
E
4
Eco
nom
ic
Exc
han
ge
rate
s
Exch
ange
rates
are
macr
oeco
nomi
c
facto
rs. It
coul
d be
chan
ged
at
any
time
(Mos
co,
2014)
.
Com
pan
y
has
dive
rsifi
ed
the
curr
ency
and
the
busi
ness
.
Econo
mical
chang
es are
the
extern
al
factor
s
which
could
not be
in the
contro
l of a
busine
ss.
E Acc
ept E
5 Eco
nom
ic
Eco
nom
ic
gro
wth
rate
Thru
grow
th
rate
of
econ
omy
direc
tly
affec
ts
the
grow
th
rate
Eco
nom
ical
gro
wth
doe
s
not
mak
e
muc
h
imp
act
on
Econo
mical
chang
es are
the
extern
al
factor
s
which
could
not be
in the
contro
l of a
E Reje
ct
The
orga
niza
tion
is
also
requ
ired
to
man
age
the
new
poli
cies
E

Risk Management
8
of
the
busi
ness.
the
busi
ness
due
to
its
busi
ness
area
.
busine
ss
(Brindl
, 2017)
to
cont
rol
the
eco
nom
ical
cha
nge
s
(Sch
eree
et
al,
201
6).
6
Eco
nom
ic
Infla
tion
rate
s
Inflat
ions
rates
shou
ld be
meas
ured
and
kept
in
know
ledg
e by
all
the
com
pani
es.
Infla
tion
rate
affe
cts
the
busi
ness
at a
hug
e
level
.
Econo
mical
chang
es are
the
extern
al
factor
s
which
could
not be
in the
contro
l of a
busine
ss.
E Acc
ept E
7 Soci
al
Leis
ure
inter
est
Soci
ety
coul
d
affec
t the
busi
ness
and
turno
ver
of a
com
pany
at
any
time.
Com
pan
y is
follo
wing
the
CSR
poli
cies.
Best
CSR
policie
s
could
help
the
busine
ss to
mainta
in the
perfor
mance
and
mitigat
e the
risk.
E Reje
ct
The
Cor
pora
te
soci
al
resp
onsi
bilit
y of
the
com
pan
y
sho
uld
incl
ude
a
bett
er
cont
ribu
tion
E

Risk Management
9
for
the
soci
ety.
8 Soci
al
Edu
cati
onal
leve
l
Educ
ation
al
level
of
the
socie
ty
affec
ts
the
busi
ness.
Com
pan
y is
follo
wing
the
CSR
poli
cies.
Best
CSR
policie
s
could
help
the
busine
ss to
mainta
in the
perfor
mance
and
mitigat
e the
risk.
E Acc
ept E
9 Soci
al
Cult
ure
Cultu
re of
a
coun
try
also
matt
ers
for a
busi
ness.
Com
pan
y is
follo
wing
the
CSR
poli
cies(
War
d,
2015
).
Best
CSR
policie
s
could
help
the
busine
ss to
mainta
in the
perfor
mance
and
mitigat
e the
risk.
E Acc
ept E
1
0
Tech
nolo
gical
Rate
of
tech
nolo
gy
diffu
sion
It
expr
esse
s
that
at
what
time
the
tech
nolo
gy
shou
ld be
spre
ad.
Com
pan
y is
usin
g
the
new
est
tech
nolo
gy
in
the
indu
stry.
Better
techno
logies
and
uses
could
help
the
comap
ny to
mitigat
e the
risk.
E Acc
ept E
1
1
Tech
nolo
gical
Tec
hnol
ogy'
s
It
expla
ins
that
Com
pan
y is
usin
Better
techno
logies
and
E Acc
ept E

Risk Management
10
imp
act
how
the
tech
nolo
gy
coul
d
affec
t a
busi
ness.
g
the
new
est
tech
nolo
gy
in
the
indu
stry.
uses
could
help
the
comap
ny to
mitigat
e the
risk
(Casey
&
Niss,
2015).
1
2
Tech
nolo
gical
Rec
ent
tech
nolo
gy
dev
elop
men
t
How
coul
d the
tech
nolo
gy
affec
t the
busi
ness
?
Com
pan
y is
usin
g
the
new
est
tech
nolo
gy
in
the
indu
stry.
Better
techno
logies
and
uses
could
help
the
comap
ny to
mitigat
e the
risk
(World
econo
mic
forum,
2015).
E Reje
ct
The
com
petit
ive
tech
nolo
gy
sho
uld
be
ado
pted
by
the
com
pan
y
(pen
g &
Kon
o,
201
5).
E
1
3
Envi
ron
men
tal
Clim
ate
cha
nge
s
Chan
ges
into
the
clima
tes
are a
meas
ure
risk
as it
affec
ts
the
busi
ness
at a
huge
level.
Worl
dwid
e
oper
atio
ns
are
not
affe
cted
by
the
clim
ate
cha
nge
s in
one
cou
ntry.
Enviro
nment
al
factor
s
could
be
mitigat
ed
after
diversi
fying
the
market
and
the
servic
es.
E Acc
ept E
1
4
Envi
ron
Rec
ycli
Wast
age
Worl
dwid
Enviro
nment E Reje
ct
Co
mpa E

Risk Management
11
men
tal ng
of
prod
ucts
and
the
reso
urce
s are
huge
risk
for a
busi
ness.
e
oper
atio
ns
are
not
affe
cted
by
the
clim
ate
cha
nge
s in
one
cou
ntry.
al
factor
s
could
be
mitigat
ed
after
diversi
fying
the
market
and
the
servic
es.
ny
sho
uld
man
age
the
bett
er
poli
ces
for
recy
clin
g
proc
ess.
1
5
Envi
ron
men
tal
Air
and
wat
er
poll
utio
n
Pollu
tion
is a
big
risk
facto
r for
a
busi
ness.
Worl
dwid
e
oper
atio
ns
are
not
affe
cted
by
the
clim
ate
cha
nge
s in
one
cou
ntry.
Enviro
nment
al
factor
s
could
be
mitigat
ed
after
diversi
fying
the
market
and
the
servic
es
(Tham,
Camp
bell &
Boese,
2016).
E Acc
ept E
1
6
Lega
l
Emp
loy
men
t
law
Empl
oym
ent
law
shou
ld be
in
conc
ern
of a
busi
ness
while
hirin
g
and
com
Com
pan
y is
follo
wing
the
legal
poli
ces
acco
rdin
g to
the
indu
stry
and
the
Legal
aspect
s must
be
studie
d and
follow
ed
proper
ly to
mitigat
e the
risk
(morg
an,
2018).
E Reje
ct
Co
mpa
ny
is
also
requ
ired
to
hire
a
lega
l
advi
sor
to
miti
gate
E

Risk Management
12
pens
ating
the
peop
le.
cou
ntry.
the
risk
(Bo
oth
&
Carr
ingt
on,
201
7).
1
7
Lega
l
Data
prot
ecti
on
Prote
ction
of
priva
te
data
is a
bige
risk
for a
busi
ness.
Com
pan
y is
follo
wing
the
legal
poli
ces
acco
rdin
g to
the
indu
stry
and
the
cou
ntry.
Legal
aspect
s must
be
studie
d and
follow
ed
proper
ly to
mitigat
e the
risk
(knon
&
peng,
2015).
E Acc
ept E
1
8
Lega
l
Heal
thy
and
safe
ty
law
It
expr
ess
abou
t the
empl
oyee
prote
ction
in a
busi
ness.
Com
pan
y is
follo
wing
the
legal
poli
ces
acco
rdin
g to
the
indu
stry
and
the
cou
ntry.
Legal
aspect
s must
be
studie
d and
follow
ed
proper
ly to
mitigat
e the
risk
(World
econo
mic
form,
2018).
E Acc
ept E
1
9
Oper
atio
nal
Cha
nge
s in
oper
atio
ns
Oper
ation
al
chan
ges
coul
d
also
be a
risk
Com
pan
y
train
s
the
emp
loye
es
befo
Proper
trainin
g is
the
risk
contro
l
factor.
E Reje
ct
The
oper
atio
nal
cha
nge
s
mus
t not
be
E

Risk Management
13
for
inter
nal
envir
onm
ent
of a
busi
ness.
re
cha
ngin
g
into
the
oper
atio
ns
(Inv
esto
rs,
2018
).
don
e by
the
com
pan
y
regu
larly
(Bre
wer
&
Willi
ams
,
201
7)
2
0
Oper
atio
nal
cha
nge
s in
inter
nal
envi
ron
men
t
Inter
nal
chan
ges
coul
d
also
be a
risk
for
inter
nal
and
exter
nal
envir
onm
ent
of a
busi
ness.
Com
pan
y
train
s
the
emp
loye
es
befo
re
cha
ngin
g
into
the
oper
atio
ns.
Proper
trainin
g is
the
risk
contro
l
factor.
E Reje
ct
The
oper
atio
nal
cha
nge
s
mus
t not
be
don
e by
the
com
pan
y
regu
larly
E
Report conclusion:
To conclude, the financial and non financial position of the company is quite better,
the comapny has already made the enough strategies and policies to manage the performance
and the effectives of the company. On the perspective of the stakeholders, it brief that the
company’s position has been better and the investment into the company would be better.
The management process of the company has also been better and it makes it easier for the
business to identify the issues and resolve it quickly.

Risk Management
14
References:
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from: http://investor.wdc.com/annuals.cfm
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Brewer, N., & Williams, K. D. (Eds.). (2017). Psychology and law: An empirical perspective.
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Brindley, C. (Ed.). (2017). Supply chain risk. Taylor & Francis.
Casey, S. E., & Niss, D. W. (2015). U.S. Patent No. 9,099,163. Washington, DC: U.S. Patent
and Trademark Office.
Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons.
Investors. (2018). Western digital corporation. (online). Retrieved on 17th April 2018 from:
http://investor.wdc.com/ownership-profile.cfm
Kwon, T. H., & Peng, S. T. (2015). U.S. Patent Application No. 29/478,526.
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Morgan, B. (2018). Legal models beyond the corporation in Australia: plugging a gap or
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Risk Management
15
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