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

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

Authors
Yihao Yang1, *
1Shanghai QibaoDwight High School, 3233 Hongxin Road, Minhang District, Minhang District, Shanghai, 201101, China
*Corresponding author. Email: yhyang_eric@qibaodwight.org
Corresponding Author
Yihao Yang
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_45How to use a DOI?
Keywords
Risks; mitigation; financial statement analysis; corporate governance
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.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_45How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yihao Yang
PY  - 2025
DA  - 2025/02/24
TI  - Challenges Faced by Technology Companies: A summarize of risk and mitigation methods
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 426
EP  - 435
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_45
DO  - 10.2991/978-94-6463-652-9_45
ID  - Yang2025
ER  -