Risk Management Analysis on Microsoft Corporation

Abstract

The process of detecting, assessing, and managing hazards is known as risk management. It involves identifying risks, evaluating risks, and implementing controls to limit risks. Risk management is an integral part of the overall management plan of any firm. The objective of risk management is to reduce the negative impact of risks on an organization's capacity to accomplish its goals. Financial risks, operational risks, strategic risks, and reputational risks can all have an impact on a firm. Financial hazards consist of threats to an organization's financial health, such as credit risk, interest rate risk, and foreign currency risk. Operational hazards include supply chain risk, technology risk, and compliance risk, which are all associated with the operations of a business. Risks associated with an organization's strategy, such as market risk, competitive risk, and regulatory risk, are categorized as strategic risks. Reputational risks include fraud risk, data breach risk, and social media risk, which are all associated with the reputation of a firm. This paper provides a comprehensive analysis on risk management approaches at Microsoft.