Risks associated with the initiative and financial effects they may have on the Microsoft Corporation. One risk is losing valuable components of the software Microsoft develops, in order to comply with the legal rules and regulations. This may cause Microsoft to pull some products out of circulation from countries that have different laws, which can drastically drop Microsoft’s profit margin. Trying to follow the laws and regulations can also cause a delay in development leading to a loss in revenue. Microsoft was the first software company to catapult itself to the for-front of the technology era. Now Microsoft has to work twice as hard to stay on top of the wave of the technology field, and this means following all the legal regulations set by all of the players in this field, including countries that do not always play nice.
Security is a large part of Microsoft’s industry, it is vital to the company as well as it stakeholders, shareholders, employees and its customers. Microsoft creates and develops the software that is used globally so ensuring fair trade and fair play across all borders. Microsoft along with its competing companies spends much of their time, efforts, and funds on the security, and integrity of the products they develop and distribute. Just imagine if a customer purchases a program from Microsoft, downloads their personal information onto this software then, the customer finds out that their sensitive information has been breached. This customer would not be inclined to stay with Microsoft. This would cause a drop in Microsoft’s revenue, and a drop in future business. Microsoft creates, develops, and distributes software which reaps high revenue, while reinvesting much of their profit to secure their product. Microsoft Believes that, sometimes sacrifices must be made in order to maintain the integrity of Microsoft and its products.