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Based on the following risks that management believes it faces. What are your recommendations to management to avoid the risk the company faces.

1) Intel believes in transparency, governance and ethics in order to reduce risks, costs and build brand value.

2) They face credit risk as the payment is received after 30 days of delivery. This risk is taken care of by letter of credit, guarantee, credit insurance etc.

3) Since Intel has its suppliers all over the world, so they face the risk of being supplied bad quality products. This risk is mitigated by audits, assessments of the product they are being supplied.

4) There is a financial risk involved in the buying and selling of products in a global market. This is due to the existing conditions in the financial markets and also due to fluctuations in currencies. Intel is prepared to handle any such risk. They are realistic in their approach towards the market. They do not rely on historical data to anticipate future trends.

5) Intel also faces product and manufacturing related risks . They deal with products that require continuous innovation and upgradation of technology. These may affect the production capacity of the company and their ability to meet deadlines for delivery of the product.

6) Last and the most important type of risk faced by Intel is that of cybersecurity and privacy. This has been taken care of by Intellectual property rights of the company.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92550440

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