Apple also needs to come up and help the management

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Apple also needs to come up and help the management in utilizing an effective way which could be used to communicate internally or externally. Implementation of control activities and
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IMPLEMENTATION OF ENTREPRISE RISK MANAFGEMENT 5 monitoring system in an effective manner helps the company to analyze the effectiveness of ERM so as to mitigate risks continuously in order to achieve its objectives. When implementing ERM, some milestones were adhered to . Milestones Milestones of the risk management process were carried out based on the purpose of ERM and the related deliverable. At first, the object seemed to expose, identify and respond to potential risks before their occurrence. Implementing ERM in a company can minimize the adverse effects observed when trying to achieve the objectives (Sheffi, 2018). For this case, there were about five milestones for Apple’s enterprise risk management. An internal ERM project team was first set up by choosing competent professionals who could focus on implementing ERM in the company. After formulating ERM plan and the charters which entail identification of project purposes, analysis of the main stakeholders, the appointment of the leaders in charge, programming the meetings and assigning the selected team members (Beasley, 2019). ERM policy was then completed together with ERM organization charts which define the responsibilities of employees in risk management. A process on assembling the information which could enable one to understand the background of the company and its business environment commenced (Wood, 2014). ERM was then planned and implemented based on the COSO framework. Each team member was given a responsibility which was within the eight components mentioned in the framework. The risk was completed in this milestone Risk Analysis In this case, the risk universe was defined based on the four groups which include; operational risks, strategic risks, financial risks and compliance risks. In order to consider these risks, they were assessed according to their effects and the livelihood (Segal, 2011). Based on the
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IMPLEMENTATION OF ENTREPRISE RISK MANAFGEMENT 6 effects, risks were categorized into different levels; high, medium and low. Each level was differentiated based on the degree of losses on several aspects. For example in the medium level of the impact, the financial losses range between 500M dollars and 5000M dollars with a certain lawsuit and reputation damage being medium in the company (Ballou, 2009). In order to sort out the livelihood risks, risks are rated from the lowest to the highest in term of percentages. They should be between 20 to 70 % or even more than 70 per cent based on their probabilities and frequencies (Sheffi, 2018). Concerning the risk assessment criteria chosen, most of the risks were scaled and six of them were prioritized as explained below; Rapid technological changes; the ability of Apple company to compete in a successful manner relies on the ability to enhance continuity and timely introduction on new products, technologies and services to the market place (Lam, 2006). Any innovated or new product will
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  • Fall '16
  • Apple Company, Enterprise risk management

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