Risk Management, Coronavirus & China
"When China sneezes, the world catches a cold"
Coronavirus, also referred to as COVID-19, now makes the above statement a reality, presenting itself as a critical risk factor for supply chains across the globe.
Apple Inc. doesn’t expect to meet its revenue guidance for the first quarter of 2020. This is due to the production slowdowns and lower smartphone demand, demonstrating the severity of the Coronavirus outbreak. However, Apple isn’t the only big tech company impacted by the virus. Nintendo is likely to struggle with the production of its Switch gaming device, while Facebook said that it will see the production of its Oculus VR headsets drop due to the epidemic. Over 400 companies have warned on the impact of the Coronavirus on Q1 earnings which could also stretch into Q2.