Identifying New & Changing Risk Factors in the Latest 10-K Filings

by | Jan 26, 2024

Using Boardroom Alpha’s SEC filing analytics, we analyzed the latest 10-Ks across US public companies to identify the new and changing risk factors. To do this, the platform analyzes every risk disclosure section to identify rare or never before used words. These novel words can modify existing risk factors (e.g. “rising” interest rates) or expose entirely new risks (e.g. “generative” AI). This method provides potent insights, revealing unique challenges at the individual company level, such as a healthcare grappling with risks related to the banking system when events like the Silicon Valley and Signature Banks occured. Simultaneously, it unveils overarching trends across a spectrum of companies, showcasing the profound impacts of transformative technologies like generative AI.

For this article, we looked across all US public companies that have filed a 10-K in the last 6 months — regardless of size or sector — and broke out the new and evolving risk disclosures into 11 risk factor categories. The table below summarizes the companies, by sector, that identified new and changing risks in each of these categories based on the new novel word analysis.

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Risk Factor Categories

Risk 1: Artificial Intelligence (AI)
Risks related to AI abound and are the most widely added in the 10-K risk factors recently. Whether it is the risks of offering AI-based products (e.g. “hallucinations”), how AI could cannibalize the company’s services, creating new Cyber-based risks, or how it could impact the business’s bottom line. If a company hasn’t mentioned this risk yet, it won’t be long.

Risk 2: Banking System
Risks related to the solidity of the banking system, liquidity, and general issues related to the pain and panic that came out of the SVB and Signature Bank debacles.

Risk 3: COVID / Pandemic
While it seems like “old news” these days, many firms have started adding risk factor language in around “resurgence” and similar for COVID-19.

Risk 4: Cybersecurity
Cyber is the threat that will only continue to grow as time goes by. Bad actors never go away, are fully determined, and are getting access to the same types of revolutionary technology, such as generative AI, that is powering growth across industries.

Risk 5: Data Protection Regulations
GDPR was the first big regulation to impact companies, but quickly California followed on and now states like Connecticut and countries like Brazil are following on. Despite there being some acknowledgement that consumer data can’t be continually protected and insurance backstops, the risks associated with holding consumer data are continuing to grow.

Risk 6: Economic
Everyone wants a “soft landing”, but it hasn’t been clear and inflationary pressures are impacting businesses directly in the supply chain and flowing through to their customers.

Risk 7: ESG
In a reflection of the state of ESG, it is seemingly as often mentioned as a risk to reputation or from ESG-stakeholders pressuring around frameworks & disclosures as it is mentioned in managing risks from rising temperatures, extreme weather, and similar.

Risk 8: Financial Reporting
For many, this is a sign of past troubles that will carry forward. Often the risks factors are around the issues from previously disclosed misstatements, remediation efforts, and potential on-going issues.

Risk 9: Reputation Risks
Concerns around brands and how stakeholders are perceiving them which could impact their business going forward.

Risk 10: War / Conflicts
Ukraine, Israel, Russia, the Middle East. Serious geopolitical issues represent real risk across industries.

Risk 11: Workforce
A number of companies are putting a renewed focus and concerns on having the right workforce, with the right skills, and being able to retain them.

List of Companies Citing New Risks

Sector Risk Theme Companies New Words
Basic Materials AI AZEK | RPM | JCI artificial | intelligence | learning | machine
Basic Materials Banking System CGA | NX deposit | fdic | insolvent | signature | silicon | valley
Basic Materials Cybersecurity CBT | AZEK | CGA | PZG | RPM | JCI | ODC | SMG cyber | cyber-attack | cyberattacks | cybercriminals | cybersecurity | hackers | hacktivist | incident | malicious | malware | phishing
Basic Materials Economic UEC | CTGO | JCI | FEAM | SMG inflation | inflationary | macroeconomic | rising
Basic Materials ESG RDUS | AZEK | RPM | WDFC | NB | APD disclosures | diversity | environment | esg | esg-related | frameworks | governance | stakeholder | sustainability
Basic Materials War / Conflicts AZEK | NTIC | CTGO | NX | JCI conflicts | east | gaza | geopolitical | hamas | instability | israel | middle | military | unrest | war
Communication Services AI WMG | FOXA | QNST | NWSA | DIS | ZDGE ai | algorithms | artificial | generative | intelligence | learning | machine
Communication Services Banking System GMGI | QNST | COMS deposit | fdic | market-wide | rumors | silicon | valley
Communication Services Data Protection Regulation FOXA | MSGS | SPHR | ZDGE colorado | connecticut | indiana | iowa | montana | texas | utah
Communication Services War / Conflicts WMG | MSGS | GMGI | COMS | ZDGE east | gaza | hamas | hezbollah | israel | middle
Consumer Cyclical AI SBUX | WRK | FLWS | TPR | ONEW | DHI | PTON | HRB ai | algorithms | artificial | generative | intelligence | learning | machine
Consumer Cyclical Banking System SFIX | MLKN | RGS | SBUX | ETD | GTIM | DHI | LESL | CTHR deposit | fdic | insolvent | market-wide | rumors | signature | silicon | valley
Consumer Cyclical Cybersecurity HOV | POL | DLA | SBUX | GEF | KRUS | KBH | MBUU | ONEW | RICK | PTON | SBH cyber | cyber-attack | cyberattacks | cybersecurity | hackers | incident | malicious | malware | phishing | ransomware
Consumer Cyclical Data Protection Regulation SFIX | BNED | TPR colorado | indiana | iowa | montana | texas | virginia
Consumer Cyclical Economic TUP | POL | DLA | BERY | MULN | EVTV | LEE | GTIM | LIVE | ONEW | PTON | UFI | INTG | STRT inflation | inflationary | macro | macro-economic | rates | rising
Consumer Cyclical ESG TUP | CBRL | DLA | BERY | MULN | SBUX | GEF | EVTV | MTN | WRK | BNED | FLWS | MCFT | MBUU | AMCR | GMBL | TPR | RICK | PTON | LQDT | HZO | WGO | HRB | SBH climate | climate-related | disclosures | diversity | environment | esg | esg-related | extreme | frameworks | governance | inclusion | stakeholder | sustainability | sustainable
Consumer Cyclical Reputation Risk TUP | BERY | WRK | FLWS | GMBL | UFI perception | reputation | reputational
Consumer Cyclical War / Conflicts POL | DLA | BERY | MULN | GEF | LEE | GTIM | BNED | ADNT | MCFT | KBH | RICK | BZH | UFI | LQDT | HZO | WGO | EAT | SBH conflicts | east | gaza | geopolitical | instability | israel | israel-hamas | middle | military | russia | tensions | ukraine | unrest | war
Consumer Defensive AI SYY | POST | LRN | AVO | UNFI | COTY | CPB | CLX ai | algorithms | artificial | generative | intelligence | learning | machine
Consumer Defensive COVID / Pandemic SANW | SMPL | IMKTA | VWE | LFVN | JJSF | NAPA covid | outbreaks | resurgence
Consumer Defensive Cybersecurity INBP | EL | CHSCP | SANW | PFGC | AVO | LANC | COTY | CENT cyberattacks | cybersecurity | hackers | incident | malicious | malware | phishing | ransomware
Consumer Defensive Data Protection Regulation SANW | HAIN | NAPA colorado | connecticut | indiana | iowa | montana | texas | virginia
Consumer Defensive Economic SANW | POST | CPB | IMKTA | LFVN | DIT | PSMT | NAPA inflation | inflationary | macroeconomic | rates | rising
Consumer Defensive ESG WBA | ALCO | SANW | PFGC | AVO | ATGE | SPB | HRL | CENT | CPB | LFVN | JJSF | HAIN | NAPA climate-related | disclosures | diversity | esg | esg-related | frameworks | governance | inclusion | stakeholder | sustainability | sustainable
Consumer Defensive Financial Reporting LRN | CENT | VWE misstatement | misstatements | restatements | weakness
Consumer Defensive Reputation Risk INBP | SANW | LRN | LANC | UTI | JJSF perception | perceptions | reputation | reputational
Consumer Defensive War / Conflicts CHSCP | FARM | ALCO | BRBR | SANW | POST | LRN | AVO | UNFI | LANC | SPB | HRL | CPB | VWE | LFVN | DIT | PG conflicts | east | gaza | geopolitical | hamas | israel | israel-hamas | middle | military | russia | tensions | ukraine | unrest | war
Financial Services AI GLAD | V | APLD | FDS | OCSL ai | algorithms | artificial | chatgpt | generative | intelligence | learning | machine | openai
Financial Services Banking System PSEC | WAFD | KRNY | FRHC | SNEX | GLAD | CASH | WMPN | BEN | GBDC | ICMB | KFFB | CLSK | PBFS | PFLT | MGYR | PFX | TFSL | HNVR | APLD | PNNT deposit | fdic | insolvent | market-wide | rumors | signature | silicon | valley
Financial Services Cybersecurity KRNY | SNEX | GROW | RJF | CLSK | AX | IROQ | AMRK | V | TFSL | ESSA | OCSL | CFFN cyber-attack | cyberattacks | cybersecurity | incident | malicious | malware
Financial Services Economic GLAD | CASH | WMPN | PROV | HTBI | CLSK | AX | SMBC | PBFS | IROQ | TFSL | HNVR | APLD inflation | inflation-adjusted | inflationary | macroeconomic | macro-economic | rising
Financial Services ESG FRHC | BEN | PROV | ATIF | KFFB | AX | TSBK | PBFS | APLD | FDS | OCSL climate | climate-related | disclosures | diversity | esg | esg-related | extreme | frameworks | governance | inclusion | stakeholder | sustainability | sustainable
Financial Services Financial Reporting FRHC | GROW | CLSK | SMBC | PFLT | APLD | PNNT misstatement | misstatements | restatements | weakness
Financial Services Reputation Risk GROW | ATIF | PBFS | IROQ | V | APLD | OCSL perceptions | reputation | reputational
Financial Services War / Conflicts WAFD | SNEX | GLAD | CASH | WMPN | BEN | RJF | HTBI | AX | SMBC | PBFS | PFX | IROQ | V | FDS conflicts | east | gaza | geopolitical | instability | israel | israel-hamas | middle | military | russia | tensions | ukraine | unrest | war
Healthcare AI PINC | ARWR | IBIO | TWST | ANEB | CTLT | COR | RMD | VREX ai | algorithms | artificial | generative | intelligence | learning | machine
Healthcare Banking System SLP | AYTU | ANEB | CTLT | RZLT | PDEX | ARAY deposit | fdic | insolvent | market-wide | rumors | signature | silicon | valley
Healthcare COVID / Pandemic SRDX | INBS | OTLK | COO | RZLT | PAHC | EDSA | RMD | EPIX | BMRA covid | outbreaks | resurgence
Healthcare Cybersecurity HOLX | AYTU | PINC | ENZ | INNV | AVXL | EMBC | CTLT | RZLT | EDSA | COR | A | ARAY cyber | cyberattacks | cybercriminals | cybersecurity | hackers | incident | malicious | phishing | ransomware
Healthcare Data Protection Regulation SLP | TLRY | PINC | ARWR | INNV | ANEB | ARAY colorado | connecticut | gdpr | indiana | iowa | montana | texas | utah | virginia
Healthcare Economic NNVC | BCTX | MEIP | NMTC | FONR | CTLT | RZLT | PAHC | INM | RMD | BMRA | ARAY | PLUR inflation | inflationary | macroeconomic | macro-economic | rates | rising
Healthcare ESG SLP | MEIP | TLRY | NMTC | PINC | TWST | VERU | EMBC | COO | CTLT | RZLT | INM | RMD | A | BDX | PLUR | VREX climate | climate-related | disclosures | diversity | environment | esg | esg-related | extreme | frameworks | governance | inclusion | stakeholder | sustainability | sustainable
Healthcare Financial Reporting NMTC | ENZ | INNV | VERU | ANEB | CTLT | RZLT | EDSA misstatement | misstatements | restatements | weakness
Healthcare War / Conflicts HOLX | ANGO | PMCB | BCTX | ENTA | SRDX | TLRY | NMTC | AYTU | ARWR | TWST | TECH | EMBC | APDN | ANEB | CTLT | RZLT | NOTV | INM | COR | RMD | A | BMRA | BDX | PLUR | SONN conflicts | east | gaza | geopolitical | hamas | instability | israel | israel-hamas | middle | military | russia | tensions | ukraine | unrest | war
Healthcare Workforce PMCB | CTXR | PINC | IBIO | CTLT | ARAY | VREX skilled | succession | turnover | workforce
Industrials AI MMS | DLB | FERG | DE | PIXY | J | TTC | KE | ADP | AYI | FC | BRC | SYM ai | algorithms | artificial | generative | intelligence | learning | machine
Industrials Banking System OPTT | GFF | ADP | FC | JOB deposit | fdic | market-wide | rumors | signature | silicon | valley
Industrials COVID / Pandemic MMS | EMR | DLHC | GBX | BRC | HURC | CRS outbreaks | resurgence
Industrials Cybersecurity ASTC | MMS | DE | OPTT | GFF | HAYN | AYI | FC | NEOV | MSM | POWL | EVI cyber | cyberattacks | cybersecurity | hackers | incident | malicious | malware | phishing | ransomware
Industrials Data Protection Regulation ASTC | DLB | ROAD | DE | TTEK | FC | ISSC | AGFY | DCI | HURC brazil | colorado | connecticut | gdpr | indiana | iowa | montana | texas | virginia
Industrials Economic ASTC | CTAS | ROAD | HI | FERG | OPTT | KE | JOB | NEOV | ARMK | TSP | WWD | HURC inflation | inflationary | inflation-sensitive | rates | rising
Industrials ESG MMS | CTAS | ROAD | HI | FERG | ABM | DE | OPTT | TTC | UNF | KE | TDG | ROK | ADP | WOR | AYI | FC | ISSC | NEOV | BRC | MATW | DCI | WWD | BV | NSSC | ESOA climate | climate-related | disclosures | diversity | environment | esg | esg-related | extreme | frameworks | governance | inclusion | stakeholder | sustainability | sustainable
Industrials Financial Reporting AGFY | EVI | SCX | ESOA misstatement | misstatements | restatements | weakness
Industrials Reputation Risk ASTC | OPTT | TTC | TTEK | TDG | MATW | POWL | EPAC perception | perceptions | reputational
Industrials War / Conflicts ASTC | DLB | HI | PH | BBCP | OPTT | GFF | REVG | HEI | TTC | EMR | UNF | TTEK | TDG | MOG.A | GENC | WOR | AYI | ISSC | JOB | ARMK | TSP | NDSN | WWD | HURC | BV | CRS | EPAC | SCX conflicts | east | gaza | geopolitical | hamas | instability | israel | israel-hamas | middle | military | russia | tensions | ukraine | unrest | war
Industrials Workforce ABM | IIIN | MATW | TSP | CRS | SCX skilled | succession | turnover | workforce
Real Estate War / Conflicts RFL | RMR east | gaza | hamas | hezbollah | middle | military | tensions
Technology AI NTNX | CRNC | EXTR | SNPS | LITE | TEL | CSCO | AVNW | GWRE | INTA | KLAC | AAPL | AMAT | CIEN | BLIN | PYCR | INTU | MU | SMCI | VIAV | HPQ | PCTY | GETR | BR | ZS | FICO | AVT | SGH | ACN | MSFT | BILL | DJCO | KLIC | OTEX | MODN | PANW | GNSS | MITK | FFIV | KNW ai | algorithms | artificial | generative | gpus | hallucinations | intelligence | learning | machine | openai
Technology Banking System CRNC | FN | SNPS | LITE | AVNW | AEHR | GWRE | INTA | PYCR | INTU | LTRX | GETR | ASYS | UI | LRCX | MTSI | ZS | RSSS | BILL | SYNA | KLIC | MODN | MITK deposit | fdic | insolvent | market-wide | rumors | signature | silicon | valley
Technology COVID / Pandemic LEDS | TEL | EGAN | RELL | GETR | FICO | BILL | WOLF | CTLP | IIIV | FFIV covid | outbreaks | resurgence
Technology Cybersecurity SCSC | VRAR | CETX | SNPS | TEL | CSCO | AVNW | GWRE | INTA | KLAC | ADBE | CIEN | MU | FKWL | VIAV | HPQ | GETR | ASYS | JBL | BR | ADI | STX | QCOM | RSSS | KLIC | CTLP | IIIV | SANM | OTEX | MODN | KNW cyberattacks | cybersecurity | hackers | hacktivist | incident | malicious | malware | phishing | ransomware
Technology Data Protection Regulation JKHY | LITE | ADBE | EGAN | VIAV | HPQ | GETR | UI | LRCX | FICO | BILL | IIIV | AKTS | OTEX | MITK | KNW brazil | colorado | connecticut | gdpr | gdpr-like | indiana | iowa | montana | texas | utah | virginia
Technology Economic COHR | CETX | SNPS | LITE | SONO | HPE | INTA | LYTS | LTRX | GETR | LRCX | EMKR | RSSS | SYNA | TGL | CTLP | IIIV | PANW | FFIV inflation | inflationary | macroeconomic | macro-economic | rates | rising
Technology ESG NTNX | EXTR | COHR | LITE | TEL | AEHR | GWRE | KLAC | AAPL | CIEN | RELL | MU | SMCI | VIAV | PCTY | LTRX | GETR | ASYS | JBL | BR | UI | AVGO | DTSS | WDC | QCOM | AVT | SGH | BILL | CLFD | TGL | IIIV | AKTS | SANM | PLAB | KNW | AOSL climate | climate-related | disclosures | diversity | environment | esg | esg-related | extreme | frameworks | governance | inclusion | stakeholder | sustainability | sustainable
Technology Financial Reporting NTNX | LITE | HPQ | LTRX | GETR | ASYS | EMKR | FEIM | AOSL misstatement | misstatements | weakness
Technology Reputation Risk VRAR | TEL | SWKS | GETR | SGH | OSIS | KNW perception | perceptions | reputational
Technology War / Conflicts AFRM | KEYS | JKHY | CRNC | CETX | SNPS | LITE | DGII | HPE | GWRE | KLAC | SWKS | CIEN | BLIN | INTU | VIAV | HPQ | GETR | JBL | BR | ADI | LRCX | TSRI | MTSI | EMKR | QCOM | RSSS | SGH | BILL | ESE | CLFD | KLIC | CTLP | IIIV | AKTS | SANM | MODN | PTC | GNSS | MITK | KNW conflicts | east | gaza | geopolitical | hamas | hezbollah | instability | israel | israel-hamas | middle | military | russia | tensions | ukraine | unrest | war
Technology Workforce JKHY | COHR | SNPS | HPE | GETR | LRCX | SGH | IIIV skilled | succession | turnover | workforce
Utilities AI SPH | NJR | UGI ai | artificial | generative | intelligence
Utilities ESG SPH | NJR | FLNC | RGCO climate-related | disclosures | esg | esg-related | frameworks | governance | stakeholder | sustainability
Utilities War / Conflicts SPH | NJR | FLNC | UGI conflicts | east | israel-hamas | middle | tensions

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