CNH Industrial (CNH) risk factors, FY2024 10-K

STRATEGIC RISKS

1. 01Global economic conditions impact our businesses
2. 02We are exposed to political, economic, trade and other risks beyond our control as a result of operating a global business
3. 03Reduced demand for equipment would reduce our sales and profitability
4. 04Competitive activity, or failure by us to respond to actions by our competitors, could adversely affect our results of operations
5. 05Changes in government monetary or fiscal policies may negatively impact our results
6. 06Our future performance depends on our ability to innovate and on market acceptance of new or existing products
7. 07If we are unable to deliver precision technology solutions to our customers, it could materially adversely affect our performance
8. 08We may face challenges to our intellectual property rights which could adversely affect our reputation, business and competitive position
9. 09We may not realize all of the anticipated benefits from our business improvement and cost reduction initiatives
10. 10We may not realize all of the anticipated benefits from our new Global Leadership Team strategic priorities
11. 11We may not be able to realize anticipated benefits from any acquisitions and, further, challenges associated with strategic alliances may have an adverse impact on our results of operations
12. 12Our business may be affected by climate change, unfavorable weather conditions or other calamities
13. 13Changes in demand for food and alternative energy sources could impact our revenues
14. 14International trade policies may impact demand for our products and our competitive position

OPERATIONAL RISKS

1. 15We depend on suppliers for raw materials, parts and components
2. 16Our existing operations and expansion plans in emerging markets entail significant risks
3. 17Dealer equipment sourcing and inventory management decisions could adversely affect our sales
4. 18Our results of operations may be adversely impacted by various types of claims, lawsuits, and other contingent obligations
5. 19A cybersecurity breach could interfere with our operations, compromise confidential information, negatively impact our corporate reputation and expose us to liability
6. 20Security breaches with respect to our products could interfere with our business and our dealers, and/or customers, exposing us to liability that would cause our business and reputation to suffer
7. 21We face risks associated with our employment relationships
8. 22Our ability to execute our strategy depends upon our ability to attract, develop and retain qualified personnel

COMPLIANCE RISKS

1. 23We are subject to increasingly stringent and evolving laws that impose significant compliance costs
2. 24We are subject to extensive laws and regulations, the violation of which could expose CNH to potential liabilities, increased costs and other adverse effects
3. 25Changes in privacy laws could disrupt our business
4. 26New regulations or changes in financial services regulations could adversely impact us

FINANCIAL AND TAXATION RISKS

1. 27Difficulty in obtaining financing or refinancing existing debt could impact our financial performance
2. 28We are subject to exchange rate fluctuations, interest rate changes and other market risks
3. 29Because Financial Services provides financing for a significant portion of our sales worldwide, our operations and financial results could be impacted materially should negative economic conditions affect the financial services industry
4. 30An increase in delinquencies or repossessions could adversely affect the results of Financial Services
5. 31We may be exposed to shortfalls in our pension plans
6. 32We have significant outstanding indebtedness, which may limit our ability to obtain additional funding and may limit our financial and operating flexibility
7. 33Restrictive covenants in our debt agreements could limit our financial and operating flexibility
8. 34CNH Industrial N.V. operates and will continue to operate, as a company that is resident in the U.K. for tax purposes; other tax authorities may treat CNH Industrial N.V. as being tax resident elsewhere
9. 35The Company could be characterized as a passive foreign investment company (PFIC) for U.S. federal income tax purposes
10. 36We may incur additional tax expense or become subject to additional tax exposure

RISKS RELATED TO OUR COMMON SHARES

1. 37The loyalty voting program may affect the liquidity of our common shares and reduce our share price
2. 38The loyalty voting program may prevent or frustrate attempts by our shareholders to change our management and hinder efforts to acquire a controlling interest in us, and the market price of our common shares may be lower as a result