Fidelity National Information Services (FIS) risk factors, FY2024 10-K

Risks Related to Our Business and Operations

1. 01If we fail to innovate or adapt our solutions to changes in technology or in the marketplace, or if our ongoing efforts to upgrade or implement our technology are not successful, we could lose clients, or our clients could lose customers, and we could have difficulty attracting new clients for our solutions
2. 02We operate in a competitive business environment; if we are unable to compete effectively, our business, financial condition or results of operations may be adversely affected
3. 03Global economic, political and other conditions, including business cycles and consumer confidence, as well as geopolitical conflicts, may adversely affect our clients or trends in consumer spending, which may adversely impact the demand for our services and our revenue and profitability
4. 04Entity mergers or consolidations and business failures in the banking and financial services industry could adversely affect our business by eliminating some of our existing and potential clients and making us more dependent on a more limited number of clients
5. 05Failure to obtain new clients or renew client contracts on favorable terms could adversely affect our business, financial condition or results of operations
6. 06Bank failures or sustained financial market disruptions could adversely affect our business, financial condition and results of operations
7. 07The Company is subject to regulation, supervision, and enforcement authority of numerous governmental and regulatory bodies in the jurisdictions in which it operates
8. 08Many of our clients are subject to a regulatory environment and to industry standards that may change in a manner that reduces the types or volume of solutions or services we provide or may reduce the types or number of transactions in which our clients engage, and therefore reduce our revenue
9. 09High profile digital banking security breaches or information system failures could impact consumer payment behavior patterns in the future and reduce our transaction volumes
10. 10Misappropriation of and infringement on our intellectual property and proprietary rights, or a finding that our patents are invalid, could impair our competitive position
11. 11If our applications or services are found to infringe the proprietary rights of others, then we may be required to change our business practices and may also become subject to significant costs and monetary penalties
12. 12Some of our solutions contain "open source" software, and any failure to comply with the terms of one or more of these open source licenses could adversely affect our business
13. 13Using and/or incorporating AI technologies into our business poses additional risks and uncertainties that have the potential to harm our reputation and could have a material adverse effect on our business, financial condition or results of operations
14. 14Lack of system integrity, fraudulent payments, credit quality, and undetected errors related to funds settlement or the availability of clearing services could result in a financial loss
15. 15Our business is subject to the risks of international operations, including movements in foreign currency exchange rates
16. 16Failure to comply with anti-bribery and anti-corruption laws could subject us to penalties and other adverse consequences
17. 17We have operations in emerging markets, primarily in Latin America, India, Southeast Asia, the Middle East and Africa. These emerging market economies tend to be more volatile than the more established markets we serve in North America and Europe, which could add volatility to our future revenue and earnings
18. 18The direct and indirect effects of climate change, including increased legal and regulatory requirements and stakeholder expectations, could adversely affect our business
19. 19Failure to attract and retain talent, including senior management and highly skilled technology personnel, could harm our ability to grow
20. 20We are the subject of various legal proceedings that could have an adverse effect on us
21. 21Unfavorable resolution of tax contingencies or unfavorable future tax law changes could adversely affect our tax expense
22. 22A material weakness in our internal controls could have a material adverse effect on us

Risks Related to Business Combinations and Ventures

1. 23We may not achieve the anticipated benefits of our recently completed Worldpay Sale, and we may also be exposed to new risks following the sale
2. 24Strategic transactions, including acquisitions and divestitures, involve significant risks and uncertainties that could adversely affect our business, financial condition, results of operations and cash flows
3. 25We have substantial goodwill and other intangible assets recorded as a result of acquisitions, and a severe or extended economic downturn could cause these assets to become impaired, requiring write-downs that would reduce our operating income

Risks Related to Our Indebtedness

1. 26Our existing debt levels and future levels under existing facilities and debt service requirements may adversely affect us, including our financial condition or business flexibility, and prevent us from fulfilling our obligations under our outstanding indebtedness
2. 27We have exposure to fluctuations in the Euro-USD exchange rates, which could negatively affect our cost to service or refinance our Euro-denominated debt securities
3. 28Rising interest rates could increase our borrowing costs
4. 29Credit ratings, if lowered below investment grade, would adversely affect our cost of funds and liquidity
5. 30Statement Regarding Forward-Looking Information