John Wiley & Sons (WLY) risk factors, FY2025 10-K

Strategic Risks

1. 01Our business may be adversely impacted if we cannot protect our intellectual property
2. 02Technological developments in artificial intelligence (AI) could disrupt the markets in which we operate and subject us to increased competition, cannibalization, legal and regulatory risks, and compliance costs
3. 03Potential reductions in US federal funding for libraries and changes to US higher education policy may adversely affect our business
4. 04Divestitures could adversely affect our business and financial results and may introduce significant risks and uncertainties
5. 05A reduction in enrollment at colleges and universities could adversely affect the demand for our higher education products
6. 06The Company and industry are highly dependent on the loyal engagement of key leaders and colleagues. Loss of talent due to inadequate skills and career path development, or maintaining competitive salaries and benefits could have a significant impact on Company performance
7. 07The competitive pressures we face in our business, as well as our ability to retain our business relationships with our authors and professional societies, could adversely affect our consolidated financial position and results of operations
8. 08The demand for digital and lower cost books could impact our sales volumes and pricing in an adverse way
9. 09As the market has shifted to digital products, customer expectations for lower-priced products have increased due to customer awareness of reductions in production costs and the availability of free or low-cost digital content and products. Increased customer demand for lower prices could reduce our revenue
10. 10Information Technology Systems and Cybersecurity Risks
11. 11We may be susceptible to information technology risks that may adversely impact our business, consolidated financial position, and results of operations
12. 12Cyber risk and the failure to maintain the integrity of our operational or security systems or infrastructure, or those of third parties with which we do business, could have a material adverse effect on our business, consolidated financial condition, and results of operations

Operational Risks

1. 13We may not realize the anticipated cost savings and benefits from, or our business may be disrupted by, our continuous improvement efforts
2. 14We may not realize the anticipated cost savings and processing efficiencies associated with the outsourcing of certain business processes
3. 15Challenges and uncertainties associated with operating in certain global markets has a higher risk due to political instability, economic volatility, crime, terrorism, corruption, social and ethnic unrest, and other factors, which may adversely impact our consolidated financial position and results of operations
4. 16Subscription agents account for approximately 18% of total annual consolidated revenue, and no one agent accounts for more than 10% of total annual consolidated revenue
5. 17In our Research business, a lack of integrity in our published research could adversely impact our consolidated financial position and results of operations

Financial Risks

1. 18Volatility in the financial markets and a related global economic downturn could impact our ability to access global credit markets and meet our future financing needs
2. 19Fluctuations in foreign currency exchange rates and interest rates could materially impact our consolidated financial condition and results of operations
3. 20We may not be able to mitigate the impact of inflation and cost increases, which could have an adverse impact on our consolidated financial position and results of operations
4. 21As a result of acquisitions, we have and may record a significant amount of goodwill and other identifiable intangible assets, and we may never realize the full carrying value of these assets
5. 22Changes in pension costs and related funding requirements may impact our consolidated financial position and results of operations

Legal, Regulatory, and Compliance Risks

1. 23Changes in laws, tariffs, and regulations, including regulations related to open access, could adversely impact our consolidated financial position and results of operations
2. 24Increases in income tax rates, changes in income tax laws or regulations, or unfavorable resolutions of tax matters could have a material adverse impact on our financial results
3. 25A disruption or loss of data sources could limit our collection and use of certain kinds of information, which could adversely impact our communication with our customers
4. 26If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired

General Risks

1. 27Global economic, market, public health, and geopolitical conditions or other events could negatively impact our consolidated financial positions and results of operations
2. 28The trading price of the shares of our common stock may fluctuate materially, and investors of our common stock could incur substantial losses
3. 29Adverse publicity could negatively impact our reputation, which could adversely affect our consolidated financial position and results of operations