Sei Investments (SEIC) risk factors, FY2024 10-K

Risks Related to Our Business Model

1. 01Our revenues and earnings are affected by changes in capital markets and significant changes in the value of financial instruments
2. 02We are exposed to product development risk
3. 03We rely on third parties to provide products and services that may be difficult to replace or which could cause errors or failures in the services we provide
4. 04Pricing pressure from increased competition and disruptive technology may affect our revenues and earnings
5. 05Our outsourcing strategy may affect our business operations and financial performance
6. 06Our earnings and cash flows are affected by the performance of LSV
7. 07Consolidation within our target markets may affect our business
8. 08External factors affecting the fiduciary management market could adversely affect us
9. 09We may experience software defects, development delays or installation difficulties, which would harm our business and reputation and expose us to potential liability

Risks Related to Our Technology

1. 10We are exposed to data and cyber security risks
2. 11We are exposed to risk of the disclosure and misuse of personal data
3. 12We are exposed to risk of outages, data losses, and disruptions of services
4. 13We are exposed to intellectual property risks
5. 14We are dependent upon third-party service providers in our operations
6. 15We are at risk of failing to keep pace with significant new technologies

Risks Related to Our Investment Products and Solutions

1. 16Our investment management business may be affected by the poor investment performance of our investment products or a client preference for products other than those which we offer or for products that generate lower fees
2. 17Poor investment performance could lead to the loss of clients and may cause AUM, revenue and earnings to decline
3. 18Failure to identify errors in quantitative investment models could adversely affect product performance and client relationships
4. 19Our investment advisory contracts may be terminated or may not be renewed on favorable terms
5. 20We rely on the services of third-party sub-advisers
6. 21We are dependent upon third-party approvals
7. 22We are dependent on third-party pricing services for the valuation of securities invested in our investment products

Risks Related to Our Legal, Regulatory and Compliance Environment

1. 23The financial services industry is subject to extensive regulations that impact our business
2. 24A failure to address conflicts of interest appropriately could adversely affect our business and reputation
3. 25Our investment management operations may subject us to legal liability for client losses
4. 26We are subject to litigation and regulatory examinations and investigations

Risks Related to Our Business Generally

1. 27We may be unable to fully capture the expected value from acquisitions, divestitures, joint ventures, minority stakes or strategic alliances
2. 28Growth of our business could increase costs and regulatory risks
3. 29We are exposed to operational risks
4. 30Disruptions of operations of other participants in the global financial system could prevent us from delivering our products and services
5. 31We are a holding company and, therefore, may not be able to receive dividends or other payments in needed amounts from our subsidiaries
6. 32Changes in, or interpretation of, accounting principles could affect our revenues and earnings
7. 33Changes in, or interpretations of, tax rules and regulations may adversely affect our effective tax rates
8. 34Currency fluctuations could negatively affect our future revenues and earnings as our business grows globally
9. 35Changes in interest rates may affect the value of our fixed-income investment securities
10. 36We are subject to financial and non-financial covenants which may restrict our ability to manage liquidity needs
11. 37We may become subject to stockholder activism efforts that each could cause material disruption to our business
12. 38We rely on our executive officers and senior management
13. 39We may incur losses if our risk management and business continuity strategies, models and processes are not fully effective in mitigating our risk exposures in all market environments or against all types of risk
14. 40We may incur losses as a result of unforeseen or catastrophic events, including the emergence of a pandemic, extreme weather events or other natural disasters
15. 41Increased geopolitical unrest and other events could adversely affect the global economy or specific international, regional and domestic markets, which may cause our revenue and earnings to decline
16. 42Climate change concerns and incidents could disrupt our businesses, adversely affect the profitability of certain of our investments, adversely affect client activity levels, adversely affect the creditworthiness of our counterparties, or damage our reputation
17. 43We are subject to risks relating to environmental, social, and governance (ESG) matters that could adversely affect our reputation, business, financial condition, and results of operations, as well as the price of our stock