Donnelley Financial Solutions (DFIN) risk factors, FY2024 10-K

Technology Risks

1. 01The Company’s failure to maintain the confidentiality, integrity and availability of its systems, software and solutions could seriously damage the Company’s reputation and affect its ability to retain clients and attract new business
2. 02The Company’s business may be adversely affected if it fails to adapt to technological changes and address the changing demands of clients, including new technologies enabling clients to produce and file documents on their own
3. 03In the event of a material disruptive event, the Company’s disaster recovery and business continuity plans may fail, which could adversely interrupt operations
4. 04If the Company is unable to protect its proprietary technology and other rights, the value of DFIN’s business and its competitive position may be impaired
5. 05Undetected errors or failures found in DFIN’s services and products may result in loss of or delay in market acceptance of the services and products, a need for non-billable customer service and support or other effects that could negatively impact its business

Business, Economic, Market and Operating Risks

1. 06A significant part of the Company’s business is derived from the use of DFIN’s services and products in connection with financial and strategic business transactions. Trends that affect the volume of these transactions may negatively impact the demand for DFIN’s services and products
2. 07The quality of the Company’s customer support and services offerings is important to the Company’s clients, and if the Company fails to offer high quality customer support and services, clients may not use DFIN’s solutions resulting in a potential decline in net sales
3. 08A substantial part of the Company’s business depends on clients continuing their use of DFIN’s services and products. Any decline in the Company’s client retention would harm the Company’s future operating results
4. 09The Company’s performance and growth partially depend on its ability to generate client referrals and to develop referenceable client relationships that will enhance the Company’s sales and marketing efforts
5. 10The highly competitive market for DFIN’s services and products, clients’ budgetary constraints and industry fragmentation may create adverse price dynamics
6. 11Fluctuations in the costs and availability of paper and other raw materials may adversely impact the Company
7. 12A failure to successfully develop, introduce or integrate new services or enhancements to DFIN’s services and products platforms, systems or applications, may harm DFIN’s reputation, and cause its net sales and operating income to suffer
8. 13The Company may be unable to hire and retain talented employees, including management
9. 14The Company’s reliance on strategic relationships as part of its business strategy may adversely affect the development of DFIN’s business in those areas
10. 15DFIN’s business is dependent upon brand recognition and reputation, and the failure to maintain or enhance the Company’s brand or reputation would likely have an adverse effect on its business
11. 16There are risks associated with operations outside the United States
12. 17compliance with applicable anti-corruption and sanction laws and regulations

Financial Risks

1. 18The Company’s indebtedness may adversely affect the Company’s business and results of operations, financial position and cash flows
2. 19The agreements and instruments that govern the Company’s debt impose restrictions that may limit the Company’s operating and financial flexibility
3. 20consolidate, merge or sell all or substantially all of the Company’s assets
4. 21The Company may be able to incur significantly more debt
5. 22Adverse credit market conditions may limit the Company’s ability to obtain future financing
6. 23The Company is exposed to risks related to potential adverse changes in currency exchange rates
7. 24Fluctuations in DFIN’s operating results or unfavorable commentary in the research and reports that equity research analysts publish about the Company may negatively affect the Company's stock price
8. 25changes in the general economic, industry and market conditions
9. 26The future sale of shares of the Company’s common stock may negatively affect the stock price
10. 27The Company’s management, subject to the Board’s oversight in certain circumstances, has broad discretion in the use of its existing cash resources and may not use such funds effectively

Legal and Regulatory Risks

1. 28Modifications in the rules and regulations to which clients or potential clients are subject to may impact the demand for the Company’s services and products offerings
2. 29Increasing regulatory focus on privacy issues and expanding laws could impact DFIN’s software solutions and expose the Company to increased liability
3. 30Changes in market conditions, changes in discount rates, or lower returns on assets may increase required pension and other postretirement benefits plans contributions in future periods
4. 31The Company may be unable to effectuate the termination of its frozen primary defined benefit plan (the “Plan”) on favorable terms or at all
5. 32The trend of increasing costs to provide health care and other benefits to employees and retirees may continue
6. 33The Company may become liable for funding obligations arising from multi-employer pension plans (“MEPP”) obligations of the Company’s former affiliates