Conduent (CNDT) risk factors, FY2024 10-K

Business, Economic, Market and Operational Risks

1. 01Our government contracts are subject to appropriation of funds, termination rights, audits and investigations, which, if exercised, could negatively impact our reputation and reduce our ability to compete for new contracts
2. 02The markets in which we operate are highly competitive, and we might not be able to compete effectively
3. 03Our ability to recover capital and other investments in connection with our contracts is subject to risk
4. 04Our business may be adversely affected by geopolitical events and increasing geopolitical tensions, macroeconomic conditions, natural disasters and other factors that could directly impact certain of our employees, customers and vendors in countries or regions effected by such events and factors
5. 05Our results of operations and financial condition may be materially adversely affected by conditions abroad, including local economics, political environments, fluctuating foreign currencies and shifting regulatory schemes
6. 06Failure to deliver on our contractual obligations properly and on time could materially adversely affect our results of operations and financial condition
7. 07Our business is dependent on continued interest in outsourcing
8. 08We may be subject to claims of infringement of third-party intellectual property rights which could adversely affect our results of operation and financial condition
9. 09If we underestimate the scope of work or the costs entailed in performing our contracts, or if we do not fully perform our contracts, our results of operations and financial condition could be materially adversely affected
10. 10The loss of key senior management or the failure to attract and retain necessary technical personnel and qualified subcontractors could materially adversely affect our results of operations and financial condition
11. 11If we fail to successfully develop new service offerings, including new technology components, and protect our intellectual property rights, we may be unable to retain current customers and gain new customers and our revenues would decline
12. 12The Company’s business, operating results and reputation may be negatively impacted by failures or delays in our efforts to modernize our information technology infrastructure and to consolidate to fewer data centers
13. 13Expectations relating to environmental, social and governance considerations expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business
14. 14We cannot guarantee that our stock repurchase program, although fully utilized to the full value approved, will enhance long-term stockholder value. Repurchases could increase the volatility of the price of our common stock and could have a negative impact on our available cash balance
15. 15Our use of artificial intelligence involves risks such as potential liability, regulatory issues, competition, and reputational damage

Legal, Compliance and Data Security Risks

1. 16We are subject to laws of the United States and foreign jurisdictions relating to individually identifiable information and personal health information, and failure to comply with those laws, whether or not inadvertent, could subject us to legal actions and negatively impact our operations
2. 17Our data systems, information systems and network infrastructure may be subject to hacking or other cybersecurity threats and other service interruptions, which could expose us to liability, impair our reputation or temporarily render us unable to fulfill our service obligations under our contracts
3. 18If we fail to meet industry data security standards, our ability to meet contractual obligations may be impaired and result in contractual damage or contract breach claims
4. 19Our results of operations and financial condition could be materially adversely affected by legal and regulatory matters
5. 20We have made and may continue to make divestitures, as well as acquisitions, investments and joint ventures, all of which involve numerous risks and uncertainties

Financial Risks

1. 21We have recorded significant goodwill impairment charges and may be required to record additional charges to future earnings if our goodwill or intangible assets become impaired
2. 22We have and will continue to have a significant amount of debt and other obligations. Our substantial debt and other obligations could have important consequences
3. 23The terms of our indebtedness may restrict our current and future operations, particularly our ability to incur debt that we may need to fund initiatives in response to changes in our business, the industries in which we operate, the economy and governmental regulations
4. 24The failure to obtain or maintain a satisfactory credit rating and financial performance could adversely affect our liquidity, capital position, borrowing costs, access to capital markets and our need or ability to post surety or performance bonds to support clients’ contracts
5. 25Our profitability is dependent upon our ability to obtain adequate pricing for our services and to improve our cost structure
6. 26If we are unable to collect our receivables for billed or unbilled services, our results of operations and financial condition could be materially adversely affected
7. 27A decline in revenues from or a loss or failure of significant clients could materially adversely affect our results of operations and financial condition
8. 28We have non-recurring revenue, which subjects us to a risk that our revenues and cash flows from operations may fluctuate from period to period
9. 29Increases in the cost of voice and data services or significant interruptions in such services could materially adversely affect our results of operations and financial condition
10. 30We are a holding company and, therefore, may not be able to receive dividends or other payments in needed amounts from our subsidiaries
11. 31We operate globally and changes in tax laws could adversely affect our results