Risk Management


Apple was established in 1976 in the US but has expanded geographically to become a global brand. Its core operations include the manufacture and sale of portable digital video and music players, computing devices, and media communication appliances.  It also sells related networking solutions, accessories, services, software and third-party digital content and applications. The company takes care of its customers by providing high-end quality products including the iTunes, iwatch, iPad, iPhone, iPod, iOS, Mac and Apple TV. The above products and related services are sold and delivered online and through the company’s application stores which include the App Store, the Mac App Store, and the iTunes Store among others (Chen et al., 2011). 

Apple has come to be one of the reputed global brands in the consumer electronics industry with respect to revenue generation (Badenhausen, 2017).  The company`s annual sales revenue amounted to $229 billion in the financial year ended September 2017. This sales volume accounted approximately to 1.25% of the total US gross domestic product (GDP). Of all the above sales, the South and North America generated more than a third in 2017. Europe and the Chinese markets brought in around twenty-two percent and sixteen percent respectively of the total sales. Japan generated 6%, while the rest of Asia had a total of 6% of the total Apple sales. The purpose of this report is to explore and identify the main risks that Apple is exposed to and the mechanisms with which it manages the risks. The report will evaluate the company’s corporate structure, operation, security, legal, regulatory and taxation characteristics in order comprehensively articulate a total risk management strategy for the company.

Risk Management

Long-term success is only possible when a company has an effective risk detection and management strategy in place (Lam, 2014). As a process, risk management starts with risk identification where the company identifies various types of risks, especially in new foreign markets, risk measurement and evaluation phase which involves analyzing risk measurement and control processes, and finally risk monitoring and control. Figure 1 summarizes the process through which Apple manages its risks…

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