Strengthening Risk Control and Compliance Management

Abstract

As the company goes global, Huawei faces many risks both externally and internally. External risks involve geopolitics, financial crises, unstable economic growth, shrinking investment, fluctuating exchange rates, strict controls over foreign exchange, anti-globalization, protectionism, anti-dumping, labor disputes, changes in customer business models, and other challenges. Internal risks include risks associated with blind expansion, product quality, business continuity, supply, long overdue inventory, long overdue accounts receivable, cyber security, user privacy protection, taxation, trade compliance, legal compliance, and corruption. All of these risks pose tremendous challenges to Huawei’s growth in the global market. When the world is in an imbalanced state, will Huawei keep its balance? How will it do so? Despite this, risks are accompanied by opportunities. Huawei does not stop progressing because of risks, nor does it ignore risks as it moves ahead. Huawei’s approach to future risks is to use the certainty of rules to deal with the uncertainty of results and use the certainty of legal compliance to deal with the uncertainty of international politics. The company must strictly monitor internal and external compliance, and strictly operate within the boundaries of its business.