Lenovo 2016 Annual Report Download - page 28

26 Lenovo Group Limited 2015/16 Annual Report
MANAGEMENT’S DISCUSSION & ANALYSIS
Risk Description Key Risk Mitigations
Supply Risk
The Group’s supply chain operations could be
disrupted by:
• Catastrophic events
• Unfavorable changes in business, political or
economic factors.
The occurrence of any of the above in its own or
its suppliers’ manufacturing activities and logistic
hubs could result in significant losses and harm
its revenue, profitability and adversely affect
its competitive position, and require substantial
expenditures and recovery time in order to fully
resume operations.
Utilise cost and operational analysis to
understand potential impacts. Ensure broad
sourcing to minimize impact of regional
catastrophes and ensure adaptation plans in
place.
Adequate insurance coverage as last line of
defence.
Human Capital Risk
The Group faces intense competition for skilled and
experienced workers due to fast-changing market
dynamics. For ongoing success, the Group must
continue to attract, retain and motivate key talent
across the enterprise, and ensure smooth transitions
throughout ongoing business transformation.
Focus human capital initiatives and strategic
workforce planning in the areas of talent
acquisition, development, rewards, and
retention.
Drive continuous improvements in competitive
reward, benefit and compensation strategies.
Further invest in employee and leadership
development programs to build employee
engagement, accelerate the internal movement
of top talent, and ensure strength of the
leadership pipeline.