What the changes say
- AI-specific risks were removed, while AI remains part of technology, pricing, cost-management and regulatory exposures.
- New risks emphasize cost control, hiring and upskilling as demand shifts, alongside competitive pricing pressure.
- Tax-law unpredictability and third-party anticorruption violations receive greater emphasis; accounting-standard risk was removed.
What changed since the prior 10-K
New
- NewFinancial Risks
convey the value of our solutions and services, the more risk we have in winning new work in sufficient volumes and at our target pricing and overall economics. Competitors may be willing, at times, to take on more risk or price contracts lower than us in an effort to enter the market or increase market share
Accenture may lose work or accept weaker economics if competitors price below it or take greater contract risks.
- NewFinancial Risks
liabilities. However, our judgments might not be sustained as a result of these audits, investigations and tax proceedings, and the amounts ultimately paid could be materially different from the amounts previously recorded
Changing tax laws, treaties, enforcement and earnings locations could materially increase Accenture’s effective tax rate.
- NewLegal and Regulatory Risks
development of the legal systems of the countries in which we operate, local laws may not be well developed or provide sufficiently clear guidance and may be insufficient to protect our rights
Employees, partners, vendors or acquired companies could violate anticorruption laws, causing fines, contracting bans and reputational damage.
Dropped
- Dropped
Risks 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
AI development, deployment and use could cause business, reputational, legal or regulatory harm.
- Dropped
or regulatory scrutiny, litigation or other legal liability, or ethical concerns that could adversely affect our business, reputation, or financial results
Evolving AI rules and standards could require costly, inconsistent compliance changes.
- DroppedFinancial Risks
Changes 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
Reworded
- 86% rewrittenFinancial Risks
Changes 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
No substantive change is visible; the risk still covers tax jurisdictions, audits, investigations and intercompany-transaction judgments.
- 82% rewrittenFinancial Risks
Our 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
The risk now specifically includes advanced AI from ecosystem partners and clients as a source of pricing pressure.
- 71% rewrittenLegal and Regulatory Risks
Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business
The listed global legal exposures now expressly include boycotts, alongside existing sanctions and regulatory requirements.
- 59% rewritten
If we do not successfully manage and develop our relationships with our ecosystem partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected
The wording now emphasizes ecosystem partners broadly and their platforms and software, rather than a few major providers.
Was: If 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
- 43% rewrittenFinancial Risks
Our results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates
The risk now details offshore delivery costs, especially Indian rupee and Philippine peso exposure, and the limits of hedging.
- 33% rewritten
If 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
The people risk now emphasizes upskilling rather than retraining and removes explicit references to diversity and lived experiences.
- 29% rewritten
The markets in which we operate are highly competitive, and we might not be able to compete effectively
The competitive threat now includes end-to-end solutions and commercial or delivery models.
- 23% rewrittenLegal and Regulatory Risks
Our business could be materially adversely affected if we incur legal liability
No substantive change is visible; litigation exposure, defense costs and management distraction remain described the same way.
- 23% rewrittenLegal and Regulatory Risks
Our work with government clients exposes us to additional risks inherent in the government contracting environment
All 22 risk factors
Headings as the filing states them, in filing order.
Other
- 01If 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 affected33% rewritten
- 02If our utilization rate is too high or too low, it could have an adverse effect on employee engagement and attrition, the quality of the work performed as well as our ability to staff projects
- 03We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks
- 04The markets in which we operate are highly competitive, and we might not be able to compete effectively29% rewritten
- 05If we do not successfully manage and develop our relationships with our ecosystem partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected59% rewritten
- 06Some of our ecosystem partners are also large clients or suppliers of technology to us. The decisions we make vis-à-vis an ecosystem partner may impact our ongoing alliance relationships with other members of our ecosystem
- 07Our ability to attract and retain business and employees may depend on our reputation in the marketplace
Financial Risks
- 08Our 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 levels82% rewritten
- 09convey the value of our solutions and services, the more risk we have in winning new work in sufficient volumes and at our target pricing and overall economics. Competitors may be willing, at times, to take on more risk or price contracts lower than us in an effort to enter the market or increase market sharenew
- 10Changes 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 condition86% rewritten
- 11liabilities. However, our judgments might not be sustained as a result of these audits, investigations and tax proceedings, and the amounts ultimately paid could be materially different from the amounts previously recordednew
- 12Our results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates43% rewritten
- 13Our debt obligations could adversely affect our business and financial condition
Operational Risks
- 14As 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
- 15If we are unable to manage the organizational challenges associated with our size, we might be unable to achieve our business objectives
- 16We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses
Legal and Regulatory Risks
- 17Our business could be materially adversely affected if we incur legal liability23% rewritten
- 18Our work with government clients exposes us to additional risks inherent in the government contracting environment23% rewritten
- 19Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business71% rewritten
- 20development of the legal systems of the countries in which we operate, local laws may not be well developed or provide sufficiently clear guidance and may be insufficient to protect our rightsnew
- 21If we are unable to protect or enforce our intellectual property rights, or if our solutions or services 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
- 22We 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
Other Accenture 10-Ks
- 2024 10-K risk factors
22 risks. AI deployment creates growing legal, regulatory, ethical and reputational exposure across client work and internal operations.
Filed Oct 10, 2024
About this page
Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.