IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-652-9_45.html

Challenges Faced by Technology Companies: A summarize of risk and mitigation methods

In: Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

Author

Listed:
  • Yihao Yang

    (Shanghai QibaoDwight High School)

Abstract

Companies involved in AI, such as Google, Microsoft, Amazon, Apple, IBM, Tesla, NVIDIA, Facebook, Intel, and Alibaba, faced a couple of risks during their operation, as referred by their annual reports for the year 2023. Of all the risks mentioned by more than one company, including collectibility risk, commodity price risk, credit risk, cybersecurity risk, equity price risk, exchange rate risk, inventory risk, residual risk, risk related to debt obligations, risk related to intellectual property, risk of product defects, errata, or other product issues, risk related to labors, risk related to legal and regulatory, risk related to ownership of company’s stock, and supply chain risk, foreign exchange risk is the risk that all mentioned companies identified. In contrast, the least identified risks among the mentioned companies are the commodity price risk, residual risk, and risk related to debt obligations. They mitigated them by entering into hedging activities and performing risk assessments. During the process of business operation, development, and expansion, risks are inevitable. This research selected ten companies and organized the risks they bore and the approaches and procedures they have been implementing to reduce the risks. For example, to reduce exchange and interest rate risk, chosen companies entered into derivatives and risk assessments to maximize their economic effectiveness position.

Suggested Citation

  • Yihao Yang, 2025. "Challenges Faced by Technology Companies: A summarize of risk and mitigation methods," Advances in Economics, Business and Management Research, in: Junfeng Lu (ed.), Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024), pages 426-435, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-652-9_45
    DOI: 10.2991/978-94-6463-652-9_45
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-652-9_45. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.