Rim Audit

Core products and services:

RIM designs, manufactures and markets wireless communications solutions to international markets. Services are geared towards instant access to time sensitive information. The core services are e-mail, phone, Short message service (SMS) through Blackberry Messenger and Internet based services such as Blackberry APP world.

RIM’s core products are Tablets, Smart Phones, and Blackberry Operating systems.

Key Business processes:

Substantial investment in Research and Development is key to RIM’s success and is the main business process. RIM’s objective to be the leader in Wireless communications products and services rests in RIM’s ability to obtain and maintain the best talent and funding for R&D and develop better products then it’s competitors.

RIM’s Customers:

Risks:

1. Currency risks:

“At February 26, 2011, approximately 59% of cash and cash equivalents, 25% of accounts receivables and 8% of accounts payable are denominated in foreign currencies” Much of the currency held is the Euro.

2. Falling Revenue’s :

“Revenue for the second quarter of fiscal 2012 was $4.2 billion, down 15% from $4.9 billion in the previous quarter and down 10% from $4.6 billion in the same quarter of last year.” The majority of RIM’s business is conducted overseas, there is an inherent risk to the recording of revenues, since performance and transfer of risks and rewards are not always clear. There is incentive to inflate revenues to increase investment and share price.

3. Intense competition / Pricing pressure

RIM is facing increasingly higher competition for market share in the communications industry. Demand for Wireless data communication is growing rapidly in Asian Pacific markets but sales have been decreasing for the last year. RIM could be facing an increase in pricing pressure.

4. Managing inventory and Asset risk:

Falling sales and the introduction of more products then ever before for 2012 will...