Verisk Analytics (VRSK) risk factors, FY2025 10-K

Other

1. 01We are subject to competition in many of the markets in which we operate and we may not be able to compete effectively
2. 02We could lose our access to data from external sources, which could prevent us from providing our solutions44% rewritten
3. 03To the extent the availability of free or relatively inexpensive information increases, the demand for some of our solutions may decrease25% rewritten
4. 04If we are unable to develop successful new solutions or if we experience defects, failures and delays associated with the introduction of new solutions, our business could suffer serious harm
5. 05We typically face a long selling cycle to secure new contracts that require significant resource commitments, which result in a long lead time before we receive revenues from new relationships71% rewritten
6. 06Acquisitions, other strategic relationships and dispositions of our business, and related integration and separation risks, could result in operating difficulties and other harmful consequences, and we may not be successful in achieving the anticipated benefits of such transactions
7. 07diluting the share value and voting power of existing stockholders
8. 08We may incur substantial additional indebtedness in connection with future acquisitions
9. 09There may be consolidation in our end customer market, which could reduce the use of our services
10. 10General economic, political and market forces and dislocations beyond our control could reduce demand for our solutions and harm our business
11. 11Our financial position may be impacted by tax audits or changes in tax laws or tax ruling
12. 12Fraudulent or unpermitted data access and other cyber-security or privacy breaches may negatively impact our business and harm our reputation
13. 13causing inquiry from governmental authorities
14. 14We may lose key business assets, through the loss of data center capacity or the interruption of cloud computing, telecommunications links, the internet, or power sources, which could significantly impede our ability to do business
15. 15A technology vendor that provides critical services, such as cloud-based infrastructure, creates a single point of failure resulting in pricing or contract lock-in risk41% rewritten
16. 16AI use by our customers or other third parties could result in the replacement of our existing products and/or solutions or the reduction of their relevanceNew
17. 17Our own use of AI to enhance our products could lead to unanticipated consequences such as ethical, compliance, privacy-observing, bias-reducing, and/or intellectual property issues26% rewritten
18. 18We use analytical models to assist our customers in key areas, such as underwriting, claims, reserving, and catastrophe risks, but actual results could differ materially from the model outputs and related analyses
19. 19We will continue to rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed
20. 20Regulatory developments could negatively impact our business
21. 21potential inquiries or investigations from government officials or others related to our policies and practices governing, among other topics, social issues
22. 22We could face claims for intellectual property infringement, which if successful could restrict us from using and providing our technologies and solutions to our customers
23. 23If a successful claim of infringement is brought against us and we fail to develop non-infringing technologies and solutions or to obtain licenses on a timely and cost-effective basis, this could materially adversely affect our business, reputation, financial condition, operating results, and cash flows
24. 24Our operations are subject to additional risks inherent in international operations
25. 25We may fail to attract and retain enough qualified employees to support our operations, which could have an adverse effect on our ability to expand our business and service our customers
26. 26Physical and transition risks associated with climate change and its consequences could disrupt operations, threaten the safety of employees, or negatively impact our financial performance
27. 27We are highly dependent upon a variety of internal computer and telecommunication systems to operate our business, including our enterprise resource planning (“ERP”) systems39% rewritten

Risks Related to Our Common Stock

1. 28If there are substantial sales of our common stock, our stock price could decline
2. 29Also, in the future, we may issue our securities in connection with investments and acquisitions. The amount of our common stock issued in connection with an investment or acquisition could constitute a material portion of our then outstanding common stock
3. 30establish advance notice requirements for nominating candidates for election to the Board of Directors or for proposing matters that can be acted upon by stockholders at stockholder meetings