Ryder System (R) risk factors, FY2024 10-K

Business and Operating Risks

1. 01Decreased customer demand for transportation and logistics services due to adverse economic conditions, competition or other factors has impacted and could in the future adversely impact our business and operating results
2. 02We bear the risk that we will not be able to resell our used vehicles at a price at or above their residual value estimates
3. 03Our profitability has been and could in the future be negatively impacted if our key operational assumptions and pricing structure prove to be invalid
4. 04Disruptions in global supply chains have impacted, and may continue to impact, our business, results of operations and financial condition
5. 05Our capital-intensive business requires us to make capital decisions based upon projected customer activity levels and market demand for our commercial rental product line
6. 06Failure to maintain, upgrade and consolidate our information technology networks, or maintain adequate controls over such technology systems, could adversely affect us
7. 07We face risks related to cybersecurity incidents and other breaches of our systems and information technology
8. 08We may fail to respond adequately or in a timely manner to innovative changes in new technology in our industry
9. 09We may fail to establish sufficient insurance reserves to adequately cover workers' compensation and vehicle liabilities

Strategic Risks

1. 10We operate in a highly competitive industry, and our business may suffer if we are unable to adequately address potential downward pricing pressures and other competitive factors
2. 11Failure to execute our business strategy, explore strategic transactions, and develop, market and deliver high-quality services that meet customer expectations may cause our revenue and earnings to suffer
3. 12We and the vehicle equipment manufacturers in our FMS business rely on a small number of suppliers
4. 13We derive a significant portion of our SCS and DTS revenue from a limited number of customers
5. 14If we are unable to mitigate labor shortage challenges, our financial results may continue to be negatively impacted
6. 15technicians, whether through the retention of current technicians or the hiring of new qualified technicians, our business could be adversely affected
7. 16A significant labor dispute involving us, our vendors or one or more of our customers, or that could otherwise affect our operations, may result in strikes, work stoppages or substantially higher labor costs

Legal and Regulatory Risks

1. 17We face litigation risks that could have a material adverse effect on the operation of our business
2. 18We operate in a highly regulated industry, and changes in existing regulations or costs of compliance with, or liability for violation of, existing or future laws or regulations could have a material adverse effect on our business
3. 19which may vary significantly from country to country. Our failure to comply with applicable laws and regulations may expose us to legal liability, fines or other penalties
4. 20Our failure to comply with U.S. or foreign tax laws or a government challenging our tax position could adversely affect our business and future operating results
5. 21Our business may be affected by climate change and legal, regulatory or other market responses to such change
6. 22vehicle requirements and related taxes, and other increased compliance requirements. These and other similar efforts may impose restrictions on our activities or require us to take certain actions, all of which may, over time, increase our costs and adversely affect our business and results of operations
7. 23Extreme weather or other natural occurrences could result in significant business interruptions and expenditures in excess of available insurance coverage
8. 24Our business may be affected by uncertainty or changes in U.S. or global social, political or regulatory conditions
9. 25Volatility in assumptions, discount rates and asset values related to our pension plans may adversely affect the valuation of our obligations, the current funding levels and our pension expense under our defined benefit pension plans
10. 26Damage to our reputation through unfavorable publicity or the actions of our employees could adversely affect our financial condition
11. 27We may be negatively impacted by adverse events in the global credit and financial markets, by an investment rating downgrade, or by the loss of an investment grade rating
12. 28Future acts of terrorism or war, or regulatory changes to combat the risk of terrorism or war may cause significant disruptions in our operations