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Managing Risk for a Publicly Traded Company

If you work for a publicly traded company, download the company's annual report. If you don't work for a publicly traded company, download the annual report of one of your favorite products (e.g. Apple or Dell). Search through the report and look for the section regarding "Managing risk" (it may be under a different name, but it is in there). Describe how this company manages economic, or some other type of risk.

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Apple is always a good example to use due to the many risks that they face both in the economy and with their operations. Their products are higher priced, so the risks compound due to the volatility of their market segment. When we talk about risks with Apple, let's look to page 12 of their annual report. One of their main risks, as identified by management, states the following:

"Global markets for the Company's products and services are highly competitive and subject to rapid technological change. If the Company is
unable ...

Solution Summary

If you work for a publicly traded company, download the company's annual report. If you don't work for a publicly traded company, download the annual report of one of your favorite products (e.g. Apple or Dell). Search through the report and look for the section regarding "Managing risk" (it may be under a different name, but it is in there). Describe how this company manages economic, or some other type of risk.

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