Archer-Daniels-Midland (ADM) risk factors, FY2024 10-K

Operational Risks

1. 01The Company is exposed to potential business disruption which could adversely affect the Company’s operating results
2. 02Transportation, inflationary impacts, and fluctuations in energy prices could affect the Company’s operating results
3. 03Human capital availability may not be sufficient to effectively support global operations
4. 04The Company may fail to realize the benefits of or experience delays in the execution of its growth strategy
5. 05The Company has limited control over and may not realize the expected benefits of its equity investments and joint ventures and may not be able to monetize the investments at an attractive value when the Company decides to exit the investments
6. 06The Company faces risks related to health epidemics, pandemics, and similar outbreaks
7. 07The Company faces risks related to international conflicts, acts of terrorism or war, or other geopolitical events, such as the ongoing Russia-Ukraine war, Israel-Hamas war, sanctions, maritime piracy, and other economic disruptions
8. 08Political instability and changes in trade policies could negatively impact the Company’s financial results
9. 09The Investigation and related events have had and may continue to have a material adverse impact on the Company
10. 10The risks described above have had and may in the future have a material adverse effect on the Company’s business, results of operations, financial condition and liquidity
11. 11The Company is subject to ongoing government investigations, and the timing for their resolution and outcome cannot be predicted
12. 12The Company identified a material weakness in the Company’s internal control over financial reporting, which could impact the Company’s ability to report its results of operations and financial condition accurately and in a timely manner
13. 13While the Company has implemented a remediation plan, the Company will not be able to conclude whether the steps the Company has taken will remediate the material weakness until a sustained period of time has passed to allow management to test the design and operational effectiveness of the new and enhanced controls
14. 14Negative publicity has and may continue to adversely affect the Company and the market price of its common stock
15. 15The Company may be impacted by carbon emission regulations in multiple regions throughout the globe
16. 16Operations could be impacted by deforestation regulations, including the European Union (EU) deforestation-free regulation as part of the EU Green Deal, and by Brazil's Amazon soy moratorium
17. 17Food or feed risks derived from quality issues or off label product usage, occupational health and safety issues, and ineffective diversification programs may expose the Company to certain regulatory or reputational risks
18. 18The Company’s sustainable practices require oversight and robust monitoring requirements. The lack of unified reporting standards increases sustainability regulatory compliance and reporting requirements

Financial Risks

1. 19Limitations on access to external financing could adversely affect the Company’s operating results due to its capital-intensive nature

Strategic and Economic Risks

1. 20Agricultural commodities, agricultural commodity products, and non-agricultural commodity raw materials the Company procures, transports, stores, processes, and merchandises can be affected by various factors beyond the Company’s control
2. 21The Company is subject to economic downturns and regional economic volatilities, which could adversely affect the Company’s operating results
3. 22The Company has significant competition in the markets in which it operates and is subject to industry-specific risks which could adversely affect the Company’s operating results
4. 23The Company’s risk management strategies may not be effective

Regulatory Risks

1. 24The Company is subject to numerous laws, regulations, and mandates globally which could adversely affect the Company’s operating results and forward strategy
2. 25Regulations specifically affecting the agricultural sector and related industries; regulatory policies or matters that affect a variety of businesses; and taxation polices could adversely affect the Company’s operating results
3. 26The Company’s inability to successfully complete its ongoing implementations of new enterprise resource planning (ERP) systems and upgrades of its information technology (IT) systems could have a material and adverse effect on the Company’s business, financial condition, and operational results
4. 27Information technology systems are subject to interruptions or failures which may affect the Company’s ability to conduct its business
5. 28The Company’s IT systems, processes, and sites may suffer cybersecurity breaches, which could expose the Company to operational and various regulatory risks
6. 29Data Security and Privacy
7. 30Regulatory and Legal Compliance
8. 31Operational Risks and Reliability
9. 32Talent and Resource Challenges