Exponent (EXPO) risk factors, FY2024 10-K

Risks Related to Our Clients and Demand for Our Services

1. 01The unpredictable and reactive nature of our business can create uneven performance in any given quarter or year
2. 02Our financial results could suffer if our clients’ needs change more rapidly than we are able to secure the appropriate mix of trained, skilled and experienced personnel
3. 03We may not manage our growth effectively, and our profitability may suffer
4. 04The loss of a large client could adversely affect our business
5. 05Our clients may be unable to pay for our services
6. 06Our business is dependent on our professional reputation
7. 07Our business can be adversely impacted by regulatory uncertainty, deregulation or reduced regulatory enforcement
8. 08Tort reform can reduce demand for our services
9. 09Potential conflicts of interest may preclude us from accepting some engagements
10. 10Inherent risks related to government contracts may adversely affect our business
11. 11Clients may terminate, cancel, modify or curtail our contracts at any time prior to their completion

Risks Related to Our Operations

1. 12Failure to attract and retain key employees may adversely affect our business
2. 13Our engagements may result in professional or other liability
3. 14We are subject to unpredictable risks of litigation
4. 15We are subject to security breaches that may disrupt our operations and/or lead to the inability to protect confidential information
5. 16Laws regarding data protection continue to rapidly evolve, and failure to protect client and employee data may have an adverse effect on our business
6. 17Our international operations create special risks that could adversely affect our business
7. 18Employee or contractor misconduct, or our failure to comply with governmental, regulatory and legal requirements or with our company-wide Code of Business Conduct and Ethics and related policies could lead to governmental or legal proceedings that could expose us to significant liabilities and damage our reputation
8. 19Failure to comply with domestic and international export laws could adversely affect our business
9. 20Increases in operating expenses may adversely affect our profitability and margins

General Risks

1. 21Competition could reduce our pricing and adversely affect our business
2. 22We hold substantial investments that could present liquidity risks
3. 23Impairment of goodwill may require us to record a significant charge to earnings
4. 24Impairment of long-lived assets or restructuring activities may require us to record a significant charge to earnings
5. 25Changes in, or interpretations of, accounting principles could have a significant impact on our financial position and results of operations
6. 26Uncertainty about current and future economic conditions and other adverse changes in general political conditions in any of the countries in which we do business could adversely affect our operating results
7. 27Our quarterly results may vary
8. 28The market price of our common stock may be volatile
9. 29There can be no assurance that we will continue to declare cash dividends or repurchase our shares at all or in any particular amounts
10. 30Catastrophic events may disrupt our business
11. 31Unavailability or cancellation of third-party insurance coverage would increase our overall risk exposure as well as disrupt the management of our business operations
12. 32Climate change may disrupt our business
13. 33Changes in interpretation and application of tax laws could harm our business, revenue, cash flows and financial results