CORPORATE RISK MANAGEMENT

Introduction

Risk is an inevitable and integral part of the business world. It is a factor of uncertainty that could potentially undermine an organisation's efforts to achieve its corporate objectives. Risk analysis helps an organisation to evaluate risks and take actions to handle risks. In simple terms, risk involves uncertainty that has the potential to harm an organisation$$s ability to achieve its corporate objectives. Corporate risk management has long been regarded as a strategic necessity to help organisations to achieve their corporate objectives.

Although there is no simple solution on how to treat risk, there is a general consensus that managing risk can improve an organisation$$s financial stability and stabilise its cash flow. Risks are not static; they evolve in both frequency and severity over time, demonstrating their dynamic nature. The complexity of internal and external risk factors has posed a substantial challenge for organisations on how to integrate a risk management framework in their business structure, enabling them to effectively analyse and respond to these corporate risks.

Examine various potential risks that Apple may encounter such as:

Supplier Chain risk

Cyber attack risk

System failure

Interest rate risk

Foreign exchange risk

Anti trust risk

Competitive Risk

Concentration risk

Discuss each risk impact on Apple$$s business operations and financial security.

Suggest each risk frequency and severity within Apple.

Probability Likelihood of event happening

$0$ no loss is certain $$ loss is not possible

$0\mathrm{.}1$ possibility is very remote

$0\mathrm{.}2$ remotely possible

$0\mathrm{.}3$ slight chance of it happening

$0\mathrm{.}4$ a little less than equal chance

$0\mathrm{.}5$ equal chance of it happening

$0\mathrm{.}6$ fairly possible

$0\mathrm{.}7$ more than likely to happen

$0\mathrm{.}8$ predictable

$0\mathrm{.}9$ very probable it will happen

$1\mathrm{.}0$ loss is certain