Accenture (ACN) risk factors, FY2024 10-K

Business Risks

1. 01Our results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and geopolitical conditions and the effects of these conditions on our clients’ businesses and levels of business activity
2. 02Our business depends on generating and maintaining client demand for our services and solutions, including through the adaptation and expansion of our services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations
3. 03Risks and uncertainties related to the development and use of AI could harm our business, damage our reputation or give rise to legal or regulatory action
4. 04If we are unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, our business, the utilization rate of our professionals and our results of operations may be materially adversely affected
5. 05We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks
6. 06The markets in which we operate are highly competitive, and we might not be able to compete effectively
7. 07Our ability to attract and retain business and employees may depend on our reputation in the marketplace
8. 08If we do not successfully manage and develop our relationships with key ecosystem partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected

Financial Risks

1. 09Our profitability could materially suffer due to pricing pressure, if we are unable to remain competitive, if our cost-management strategies are unsuccessful or if we experience delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels
2. 10Pricing pressures have had and may continue to have a negative impact on our profitability
3. 11Our profitability could suffer if we are not able to remain competitive
4. 12Our profitability could suffer if our cost-management strategies are unsuccessful, and we may not be able to improve our profitability
5. 13If we do not accurately anticipate the cost, risk and complexity of performing our work or if third parties upon whom we rely do not meet their commitments, then our contracts could have delivery inefficiencies and be less profitable than expected or unprofitable
6. 14Changes in our level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on our effective tax rate, results of operations, cash flows and financial condition
7. 15Our results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates
8. 16Our debt obligations could adversely affect our business and financial condition
9. 17Changes to accounting standards or in the estimates and assumptions we make in connection with the preparation of our consolidated financial statements could adversely affect our financial results

Operational Risks

1. 18As a result of our geographically diverse operations and our strategy to continue to grow in our key markets around the world, we are more susceptible to certain risks
2. 19If we are unable to manage the organizational challenges associated with our size, we might be unable to achieve our business objectives
3. 20We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses

Legal and Regulatory Risks

1. 21Our business could be materially adversely affected if we incur legal liability
2. 22Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business
3. 23Our work with government clients exposes us to additional risks inherent in the government contracting environment
4. 24If we are unable to protect or enforce our intellectual property rights, or if our services or solutions infringe upon the intellectual property rights of others or we lose our ability to utilize the intellectual property of others, our business could be adversely affected
5. 25We are incorporated in Ireland and Irish law differs from the laws in effect in the United States and might afford less protection to our shareholders. We may also be subject to criticism and negative publicity related to our incorporation in Ireland