Insight Enterprises (NSIT) risk factors, FY2024 10-K

Risks Related to Our Business, Operations and Industry

1. 01The IT hardware, software and services industry is intensely competitive, and actions of our competitors, including manufacturers and publishers of products we sell, can negatively affect our business
2. 02We rely on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can and do change significantly in the amounts made available and the requirements year over year
3. 03We may not be able to keep pace with rapidly evolving technological advances and the evolving competitive marketplace in which we sell our service offerings
4. 04General economic and political conditions, including unfavorable conditions in a particular region, business or industry sector, may lead our clients to delay or forgo investments in IT hardware, software and services
5. 05Changes in the IT industry and/or rapid changes in technology may reduce demand for the IT hardware, software and services we sell or change who makes purchasing decisions for IT hardware, software and services
6. 06Failure to provide high quality services to our clients could adversely affect our reputation, brand, business, results of operations or cash flows
7. 07We rely on independent shipping companies for delivery of products and are subject to price increases or service interruptions from these carriers
8. 08There are risks associated with our international operations that are different than the risks associated with our operations in the United States, and our exposure to the risks of a global market could hinder our ability to maintain and expand international operations
9. 09The interruption of the flow of products from our suppliers could disrupt our supply chain
10. 10A natural disaster or other adverse occurrence at one of our primary facilities could damage our business

Risks Related to Our Technology, Data and Intellectual Property

1. 11Disruptions in our IT systems and voice and data networks could affect our ability to service our clients and cause us to incur additional expenses
2. 12Cyberattacks, data incidents and breaches in the security (i) of our information systems and networks, (ii) of the products we sell and services we provide, and (iii) of the electronic and confidential information in our possession could materially adversely impact our financial condition, results of operations, reputation, and relationships with clients, partners, vendors, and teammates
3. 13We may not be able to protect our intellectual property adequately, and we may be subject to intellectual property infringement claims
4. 14The development, adoption and use of Gen AI may result in increased liability exposure and competitive risk

Risks Related to Regulatory and Legal Matters

1. 15We are exposed to risks from legal proceedings and client audits and failure to comply with the laws and regulations applicable to our operations could adversely impact our business, results of operations or cash flows
2. 16Our public sector contracts are subject to unique risks and uncertainties, including termination rights, delays in payment, audits and investigations, any of which could have a material adverse effect on our business
3. 17Changes in, interpretations of, or enforcement trends related to tax rules and regulations may adversely affect our effective income tax rates or operating margins and we may be required to pay additional tax assessments

Risks Related to Our Indebtedness

1. 18We have a substantial amount of indebtedness, which could have important consequences to our business
2. 19We are subject to counterparty risk with respect to the Call Spread Transactions
3. 20Our acquisition strategy may increase our outstanding debt and interest expense and decrease the availability under our financing facilities, all of which could have a material adverse effect on our results of operations and financial condition

General Risk Factors

1. 21Our future operating results may fluctuate significantly
2. 22Contractual disputes with our clients and third-party suppliers could be costly, time-consuming, and harm our business and reputation
3. 23We depend on certain key management personnel and our ability to attract, train and retain skilled teammates to satisfy client demand, including highly skilled technical resources with experience in key digital areas
4. 24The acquisition, integration and operation of acquired businesses may disrupt our business and create additional expenses, and we may not achieve the anticipated benefits of the acquisitions
5. 25Future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock