Question

Create a risk management plan including contingency plans for the identified risks for Apple Inc.

Answer 1

Risk is inherent in all business operations. ”Risk Management is the process during which an organization identifies and prioritizes risks and subsequently employs measures to lessen the probability of harmful events and maximize opportunities,”. Therefore, risk management is not a one-time process but rather a process aimed at providing continuous improvement to the corporation as the marketplace changes will mitigate negative impact.

Risk Identification & Assessment

Apple Inc.’s strategic plan is formulated to cause the company to gain market share for retailers offering innovative, customer-friendly merchandise. Innovation will not be limited to the revamping of the storefront locations but, also through how customers are able to locate and order all products through the website. Employing a technological-advanced, user-friendly ordering system will allow customers greater flexibility with dealing with the company but, keeps brand loyalty within the organization. The following are risks associated with electronic commerce:

1. Phishing attacks – information breaches that resulting in loss of intellectual property loss customer data.

2. Personal use of confidential information by employees – employees will likely have access to personal information such as credit card numbers, addresses and other key details that lend itself to identity theft occurring.

Risk Mitigation & Contingency Plan

Apple Inc.’s risk mitigation and contingency plan is confronts probable risks with the hope of thwarting issues before occurrence. The following preventative measures will be implemented to ensure that customer security and satisfaction is fulfilled:

• SSL Security: SSL, or Secure Socket Layer, is an encryption method used to encrypt sensitive customer data so that it cannot be intercepted by hackers. Ensuring that the website has SSL protection will show customers that their safety and security, in addition to their business, is important to the company .

• Limited Access to Customer Information: Information will only be made available to employees on a need to know basis. For example, if a purchasing or finance employee needs access to the full credit card number to process payment then this person will be granted access to this level of information. In contrast, a receptionist does not need this information to be readily available in order complete their job duties.

Implementation of these measures will allow the company to avert adverse actions that could damage its reputation. Furthermore, prior to order submission there will be a series of disclosures that provides customers with company policy related to online transactions and methods for contesting charges or other customer service issues. Should a customer be victimized after conducting business on the Apple Inc. website then the company will support the customer in recouping damages and prosecute assailants to the fullest extent of the law. This will allow the company to salvage any damage to its reputation before it is escalated and results in the loss of a customer.

Conclusion

In conclusion, successful implementation is essential to furthering Apple Inc.’s short-term and long-term success. Predetermined milestones will allow the company to assess its successes and failures in relation to a preconceived set of standards. Consistent and thorough evaluation of positive and negative feedback will help the company address internal and external factors that could impede a smooth transition process. Evaluating its resources, aligning its strategic plan with customers’ wishes and making the most of its strengths will allow Apple Inc. to position itself to be a leader in the marketplace and a viable candidate for market domination.