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 procedures.
The report outlines a brief description on the risk assessment. It covers a clear definition of risk and detailed research on a recognized organization, Apple Inc., and its risk assessment (Haimes, 2015). The report also describes 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 be 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 produce and manufacture computer software, online services, and customer electronics (McNeil, Frey & Embrechts, 2015). It produces hardware products like iPhone smartphones, iPad, iPod, Apple Watch, Mac computers, Apple TV, and many more. In 2015, it does face 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 an identifiable component of an enterprise, which is utilized in the supply of a service or product that has risks or returns different from other businesses. Apple Inc. Risks are common for any organization (McNeil, Frey & Embrechts, 2015). Apple faces some of the major potential risks in its businesses. The risks of this organization are as follows:
- i) Competition: The main risk that Apple faces in its business is massive competition. There are companies that produce similar electronic products. This creates a common issue for Apple.
- ii) Inventory: Another unavoidable risk for Apple is the shortage of 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 their manufacturing, Apple Inc. will be in tremendous problems (Haimes, 2015). There is always a high chance of risk of this particular problem.
The above-given risks clearly explain that even after being the leading industry in all over the world, Apple Inc. has many risks and threats in their business. 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 almost every year. This makes their products tempting and acceptable to 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 a 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 an immediate basis (Glendon, Clarke & McKenna, 2016).
The above risk assessment strategies clearly define that Apple Inc. can easily manage its potential risks in its business.
Conclusion
Therefore, from the above discussion, it can be concluded that Apple Inc. is 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 description of 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.
