Risk Management Analysis Of Apple Inc: Internal And External Stakeholders

Internal Stakeholders

Discuss about the Business intelligence in risk management.

The organization that is being considered for evaluation as a part of this analysis is Apple inc., which is an  American multinational organization aiming at the development of technology and software for the better functioning of the computing systems.  It is headquartered in Apple Park, 1 Apple Park Way, Cupertino, California, U.S. the company has developed a number of software and hardware for befitting the requirements of the people in this era of Information technology. The gross revenue of the company as was calculated in the year 2017 was around  US$ 229.234 billion which portrays the development of the organization  in the market (Finance.yahoo.com 2018). The company has a current employment of 123,000 employees which clearly states the high retention rate of the employees ion the organization thereby resulting to its sustainability in the market structure.  On the other hand, the development of the organization can be stated through the analysis of the number of retail stores that the company has around the globe. It has helped in the understanding of the different aspects of the development that is being undertaken by the management of the organization.

The internal stakeholders of the organization are:

• Donors
• Employees
• Investors
• Board members
• Owners

Internal stakeholders	Risks Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
Donors	The technology that is being used by the organization might get outdated and that might dissolve the organization and its goodwill. It will be affecting the donor’s status in the business.
Employees	The employees and their employment might get affected through the dissolution and any assorted risks faced by the organization.
Investors	The investments that are being undertaken by the investors might get affected through the risks that are being faced by the organization. The decreasing profitability of the organization becomes a growing concern for the investors, as they fear the insolvency affair.
Board members	The shares of the board members are affected through the productivity of the organization in the market. On the other hands, the company faces various obstructions while tactically facing the different aspects of the risks (Bolton, Chen  and Wang  2013).
Owners	The owners of the company gets affected through the declining productivity of the organization in the market structure. It has helped in the understanding of the prospects of the change that is being initiated by the organization in the market.

The external stakeholders of the organization are listed in this  section of the analysis:

• Supplier
• Society
• Creditor
• Customer
• Shareholders

External stakeholders	Risks
Supplier	The suppliers of the company might get affected through the low productivity of the organization, as the demand for the suppliers will fall in that scenario.
Society	The society where the organization performs its  operations gets affected through the risks that are being faced by the same leading to dissolution because the lifestyle and the social  systems might collapse which rested on the  profitability of the organization in the market.
Government	The tax pay ability of the organization might get affected through the decrease in the productivity, which hurts the interests of the government relating to the development of the nation.
Customer	The customers of the company are drastically affected by the fall in the productivity of the organization as the shift of the loyalty and trust is required to be undertaken by them. The fall in the product quality will be affecting millions off Apple users affecting their trust and loyalty at the same time.
Shareholders	The  shareholders of the organization also  gets affected through the minimum returns on the investments that they undertook (Pritchard and PMP  2014). The fall in the productivity affects the interest of the shareholders largely.

1. Political- the risk that is being faced by the organization is based on the acceptability of the product  and the operations in the international markets.
2. Economic- the organization might face issues while expanding in the international markets based on the consideration of the economic stability in the market at which the organization is trying to operate.
3. Social- the social risks that the organization might face is based on the understanding of the different aspects of the change that the organization is required to adapt in order to suit the individual needs of the customers (Wu, Chen  and Olson  2014).
4. Technological- the technological issues that the company might face is based on the outdated technology which would result to a rise in the competitors in the market. It might affect the market positioning of the brand affecting the goodwill of the organization in the market.
5. Legal- the legal factors that affects the organization is again based on the flexibility of the organization to adapt to the legislations that are being set out by the nations where the organization aims at operating.
6. Environmental- the environmental changes affects the free functioning of the organization in the market. It affects the availability of the resources and thereby affects the profitability of the organization in the market.

1. Security and confidentiality
2. Progress of the organization through an analysis of the needs for sustainability

The strengths help in determining the progress made by the organization through the identification of the risks and thereby avoiding the same. On the other hand, the proper maintenance of the confidentiality helps the organization in retaining the competitive advantage of the organization in the market.

1. Inaccurate measures for determining the risks
2. The security system of the risk management might get compromised

The weakness of the risk management systems that is being undertaken by the organization is based on the security issues that are faced by the organization relating to the documentation of the risks (McNeil, Frey  and Embrechts  2015). On the other hand, the inaccurate measures tending to the risks, which are based on the assumptions affects the productivity of the organization in the market.

The success factors that are being considered by the organization while undertaking the risk management plan is based on the retention of the brand loyalty among the customers and the retention of the quality of the products manufactured by the organization (Glendon,   Clarke and McKenna  2016). The most important factor that influences the organization for undertaking a risk management is based on the understanding of the different aspects of the change in the structure and the functioning of the organization in the market.

The goals of the organization is  based on maintaining the market position of the organization through the continuous innovation. It has helped the organization in enumerating the risks while undertaking the innovation in the organization and the structural changes. Therefore, the goal of the organization of continuous innovation leading to sustainability is backed  by the urgency of the risk management plan.

The questions relating to the methodology and the solutions arre being listed in this section of the analysis.

• What might lead to the impact? (qualitative risk assessment)
• What is the probability of its failure? (probability quantification – quantitative risk assessment)
• Expected consequences? (impact assessment – quantitative risk assessment

	Consequence
Risks	security systems	Obsolete technologies	Competitors
Likelihood		Minor	Moderate	Major
Frequently	6	9	7
Likely	2	4	10
Remote	1	3	6

The risks that are being analyzed by the organization affects the smooth functioning and the market position of the organization. It also affects the goodwill of the same in the market affecting the customer loyalty.

Risks	Treatment
Security systems	Creation of Firewall
Obsolete technologies	Continuous Innovation
Competitors	Market research and analysis for the determination of the weak elements

Treatment (from question 8)	Actions required for implementation (based on hierarchy of control)	Responsible person	Deadline	Review treatment date	Communication method
Creation of Firewall	·         The proper analysis of the needs of the change that is being undertaken by the organization Understanding the urgency for the introduction of the firewall Undertaking software updates	IOS Software developer	4th June 2017	7th July 2017	Emails and company portal
Continuous Innovation	Market research on the type  of in innovation required for coping up with the needs of the consumers (McNeil, Frey  and Embrechts  2015)	Managers of the respective departments where innovation is required	7th august 2017	4th September 2017	Social media platforms, newsletters and the emails
Market research and analysis for the determination of the weak elements	Undertaking the market research will  be helping the organization in understanding the improvements brought about by the competitors in the market. It will be helping the organization in strategizing the change that is required to be undertaken by the same for maintaining the sustenance in the markets	Operations manager	5th September 2017	10th November 2017	Newsletters, blogs, e-releases and other portals

The organization makes use of various confidential monitoring tools for keeping a record of the feedbacks after the implementation of the action plan in the organizational structure (McNeil, Frey  and Embrechts  2015). It helps in determining the progress made by the organization through the proper understanding of the various aspects of the change that is undertaken by the organization by the plan.

The methodology that is being undertaken by the organization is based on the evaluation of the records that are being managed and documented by the organization. The proper management of the risks that are being undertaken by the organization is  based on the evaluation of the feedbacks that are attained by the organization while implementing the change.

 “Volunteer Protection Act 2001” is the insurance that must be taken into consideration by the organization, which helps in determining the interests of the organization for growth and expansion.

References

Bolton, P., Chen, H. and Wang, N., 2013. Market timing, investment, and risk management. Journal of Financial Economics, 109(1), pp.40-62.

Finance.yahoo.com (2018). AAPL Income Statement | Apple Inc. Stock – Yahoo Finance. [online] Finance.yahoo.com. Available at: https://finance.yahoo.com/quote/AAPL/financials/ [Accessed 19 Mar. 2018].

Glendon, A.I., Clarke, S. and McKenna, E., 2016. Human safety and risk management. Crc Press.

McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts, techniques and tools. Princeton university press.

Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. CRC Press.

Wu, D.D., Chen, S.H. and Olson, D.L., 2014. Business intelligence in risk management: Some recent progresses. Information Sciences, 256, pp.1-7.

Factors relating to the risk management plan