Information Services Group Inc.
For the period ended Dec 31, 2025. Filed Mar 6, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 6, 2026
III$5.92-0.7%Stored close · as of Nov 6, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-13.
0001558370-25-002897
Item 1A. Risk FactorsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-06.
0001104659-26-024573
Item 1A. Risk FactorsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 131 previous paragraphs and 154 current paragraphs.
109 unchanged; 19 reworded; 21 added; 0 removed; 3 previous and 5 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
The development, deployment, and use of artificial intelligence technologies, including generative AI, involve significant legal, regulatory, operational, ethical and commercial risks, any of which could materially and adversely affect our business, financial condition, results of operations and reputation.
Current report
We are increasing our use of AI across our service delivery, advisory offerings and internal operations. AI technologies are at an early stage of development and present uncertainties regarding reliability, accuracy, explainability, data governance and long-term economic viability. Although we are dedicating resources to AI-related investments, training and partnerships, we may be unable to develop, procure, implement, or maintain AI tools and capabilities in a manner that meets client requirements, complies with applicable laws or produces anticipated operational or financial benefits.
Current report
AI systems may generate outputs that are inaccurate, biased, incomplete, unpredictable or otherwise unintended. Such outcomes could result in operational failures, adverse client impacts, misinformed decision-making, or reputational harm. Any failure by us—or by third parties whose tools or data we use—to appropriately design, test, validate, monitor or govern AI systems could expose us to contractual claims, indemnification demands, regulatory enforcement, litigation, financial penalties or other liabilities.
Current report
The regulatory framework governing AI is rapidly evolving and varies significantly across jurisdictions in which we operate. New or amended laws, regulations, standards or guidance may impose additional obligations on the development, use, auditing or documentation of AI systems, restrict certain uses of AI, require enhanced disclosures, or create new liabilities. Compliance with such frameworks may require substantial investment in governance, controls, reporting processes and oversight mechanisms. Failure to comply—whether actual or perceived—may result in investigations, fines, operational restrictions, adverse publicity or loss of client trust.
Current report
Our competitive position may be adversely affected by rapid technological change and heightened competition related to AI. Competitors, including global consultancies, technology vendors, hyperscalers and emerging AI-native firms, may introduce capabilities that exceed or supplant our own. Clients may accelerate internal development of AI capabilities that reduce demand for our services. AI and automation may also diminish the need for certain services currently provided by our personnel, and we may not be able to adjust our delivery model, pricing, staffing, training or organizational structure in a timely or cost-effective manner.
Current report
In addition, our AI capabilities depend on access to third-party infrastructure, data sets, cloud environments, software, models and specialized hardware. Supply constraints, increased pricing, licensing limitations, service interruptions, security vulnerabilities and/or incidents, or changes in contractual terms could materially impair our ability to develop, deliver or support AI-related services. Uncertainties regarding ownership, licensing or permissible use of training data, model outputs or other intellectual property may expose us to disputes, forced modifications, operational delays or damages.
Current report
Any of the foregoing factors—individually or collectively—could materially and adversely affect our business, financial condition, results of operations and reputation.
Current report
Clients’ failure or inability to pay for our services, whether on a timely basis or at all, could materially, adversely affect our results of operations and financial condition.
Current report
As further described in Note 2 to the Consolidated Financial Statements, “Summary of Significant Account Policies – Accounts Receivable, Contract Assets and Allowance for Doubtful Accounts,” the Company has been engaged in litigation with certain clients who have either failed to make payments as per the contracted payment schedule or have disputed account receivable balances for services rendered. While we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of clients to pay fees or for disputes that affect our ability to fully collect billed accounts receivable, our actual experience may vary from these estimates, and there is no guarantee that such allowance will ultimately be sufficient. We may be required to record additional allowances or write offs in future periods, which, in turn, could adversely impact our financial condition and results of operation.
Current report
Moreover, while the Company continues to aggressively pursue legal action and/or collection against clients who dispute charges or fail to make payments, there is no guarantee that the Company’s legal actions will be successful, that actual collections from clients will reflect the Company’s estimate of amounts owed, and/or that the Company will be able to recoup legal fees expended on such actions.
Current report
Changes to trade policy, including new or increased tariffs and changing import/export regulations, may adversely affect our business, financial condition and results of operations.
Current report
Changes in U.S. or international laws and policies governing foreign trade could materially and adversely affect our business. The U.S. has instituted certain changes, and has proposed additional changes, in trade policies that include the negotiation or termination of trade agreements, the imposition of higher tariffs on imports into the U.S. and other government regulations affecting trade between the U.S. and other countries where we conduct our business. The new tariffs and other changes in U.S. trade policy have triggered retaliatory actions by affected countries, and foreign governments have instituted, or are considering imposing, trade sanctions on U.S. goods.
Current report
The imposition of tariffs and other trade restrictions, as well as the escalation of trade disputes and any downturns in the global economy resulting therefrom, could materially and adversely affect our business, financial condition and results of operations. The extent and duration of the tariffs and other trade restrictions and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions or exclusions that may be granted, the availability and cost of alternative sources of supply and demand for our services in affected markets.
Current report
We recognize that our use of AI introduces risks related to data protection, cybersecurity, model integrity, confidentiality and operational reliability. In particular, our use of AI technologies may expose us to errors, data quality issues, security vulnerabilities, or other harms, especially as these technologies can behave unpredictably, fail, or produce inaccurate or biased outputs. Failures in oversight, system design, or data quality could result in various harms to us or our clients, including, but not limited to, operational disruptions, security or privacy incidents, and/or reputational challenges. Because AI systems can be complex and difficult to fully evaluate or audit, we may be unable to detect errors or vulnerabilities in a timely manner. If we are unable to effectively implement, monitor, and manage these technologies, our business, financial condition, and results of operations could be adversely affected.
Current report
In light of these risks, we have established governance processes intended to support the responsible evaluation, approval, deployment and monitoring of AI tools used in our internal operations and in client delivery. These processes include review mechanisms
Current report
for higher-risk AI use cases, defined roles and responsibilities for management oversight, and coordination among our information security, legal, compliance and risk management functions.
Current report
Our Board of Directors, through its designee, the Information Security Committee (“ISC”), receives periodic updates from management regarding emerging AI-related risks, regulatory developments, and the potential impact of AI on our operations, technology environment and risk profile. Management is responsible for implementing controls, policies, training and monitoring procedures relevant to AI technologies, including restrictions on the use of unapproved or public AI tools that may create confidentiality, cybersecurity or compliance risks.
Current report
As AI technologies and associated global and domestic laws and regulations continue to evolve, we may be required to, among other things: enhance our governance frameworks, controls, documentation and reporting practices, increase our compliance costs; and/or limit our use of certain technologies. There can be no assurance that our processes will be sufficient to prevent or mitigate all AI-related risks, and failures or limitations in these processes could have a material adverse effect on our operations, reputation or regulatory posture. Moreover, any failure to comply with emerging AI regulatory frameworks could result in enforcement actions, fines, or other adverse consequences.
Current report
We may experience employment-related claims, commercial indemnification claims and other legal proceedings that could materially harm our business.
Current report
We currently are, and may again in the future be, subject to employment-related claims in certain of the jurisdictions in which we operate, including claims of wage and hour violations. We incur a risk of liability for claims relating to employment-related matters, contractual obligations, government inquiries and other claims. Some or all of these claims may give rise to litigation or settlements, which may cause us to incur costs or have other material adverse impacts on our financial statements. Additionally, new employment and labor laws and regulations may be proposed or adopted in the jurisdictions in which we operate that may increase the potential exposure of employers to employment-related claims and litigation.
Current report
Certain clients have negotiated broad indemnification provisions regarding the services we provide. In addition, we may have liability to our clients for the action or inaction of our consultants that may cause harm to our clients or third parties. In some cases, we must indemnify our clients for certain acts of our consultants or arising from our consultants’ presence on the client’s job site. We may also incur fines, penalties, and losses that are not covered by insurance or negative publicity with respect to these matters.
Reworded paragraphs (19)
Previous wording
The 2023 Credit Agreement contains financial covenants requiring that we maintain, among other things, certain leverage and interest coverage ratios. Poor financial performance could cause us to be in default of these covenants. While we were in compliance with these covenants as of December 31, 2024, there can be no assurance that we will remain in compliance in the future. If we fail to comply with the covenants in our credit agreement, we may have to seek an amendment or waiver from our lenders to avoid the termination of their commitments and/or the acceleration of the maturity of outstanding amounts under the credit facility. The cost of our obtaining an amendment or waiver could be significant, and further, there can be no assurance that we would be able to obtain an amendment or waiver. If our lenders were unwilling to enter into an amendment or provide a waiver, all amounts outstanding under our credit facility would become immediately due and payable.
Current wording
The 2023 Credit Agreement contains financial covenants requiring that we maintain, among other things, certain leverage and interest coverage ratios. Poor financial performance could cause us to be in default of these covenants. While we were in compliance with these covenants as of December 31, 2025, there can be no assurance that we will remain in compliance in the future. If we fail to comply with the covenants in our credit agreement, we may have to seek an amendment or waiver from our lenders to avoid the termination of their commitments and/or the acceleration of the maturity of outstanding amounts under the credit facility. The cost of our obtaining an
Previous wording
Since our inception, we have expanded through acquisitions. In the future, we plan to pursue additional acquisitions and investments as opportunities arise. We may not be able to successfully integrate businesses that we acquire in the future without substantial expense, delays or other operational or financial problems. In addition, we may not be able to identify, acquire or profitably manage additional businesses. If we pursue acquisition or investment opportunities, these potential risks could disrupt our ongoing business, result in the loss of key customers or personnel, increase expenses and otherwise have a material adverse effect on our business, results of operations and financial condition.
Current wording
Since our inception, we have expanded through acquisitions, including our most recent acquisition of Martino & Partners s.r.l. (“Martino & Partners”), a strategic advisory firm serving public and private sector clients in Italy, on September 1, 2025. In the future, we plan to pursue additional acquisitions and investments as opportunities arise. We may not be able to successfully integrate businesses that we acquire in the future without substantial expense, delays or other operational or financial problems. In addition, we may not be able to identify, acquire or profitably manage additional businesses. If we pursue acquisition or investment opportunities, these potential risks could disrupt our ongoing business, result in the loss of key customers or personnel, increase expenses and otherwise have a material adverse effect on our business, results of operations and financial condition.
Previous wording
Integrating businesses we have acquired, or may acquire in the future, may involve unanticipated delays, costs and/or other operational and financial difficulties. In integrating acquired businesses, we may not achieve expected economies of scale or profitability or realize sufficient revenue to justify our investment. If we encounter unexpected problems as we try to integrate an acquired firm into our
Current wording
Integrating businesses we have acquired, or may acquire in the future, may involve unanticipated delays, costs and/or other operational and financial difficulties. In integrating acquired businesses, we may not achieve expected economies of scale or profitability or realize sufficient revenue to justify our investment. If we encounter unexpected problems as we try to integrate an acquired firm into our business, our management may be required to expend time and attention to address the problems, which would divert their time and attention from other aspects of our business.
Previous wording
We have conducted dispositions in the past and may again in the future. Disposition involve risks and uncertainties, such as our ability to sell such businesses for a satisfactory price and terms and in a timely manner, or at all, potential disruptions to other parts of our organization and distraction of management, the reallocation of internal resources that would otherwise be devoted to completing strategic acquisitions, potential losses of key employees or customers, exposure to unanticipated liabilities, any ongoing obligations to support the business following any such disposition, and other adverse financial impacts. The realization of any of these risks could adversely affect our business.
Current wording
We have conducted dispositions in the past, most recently disposing of our automation business in 2024, and may again in the future. Disposition involve risks and uncertainties, such as our ability to sell such businesses for a satisfactory price and terms and in a timely manner, or at all, potential disruptions to other parts of our organization and distraction of management, the reallocation of internal resources that would otherwise be devoted to completing strategic acquisitions, potential losses of key employees or customers, exposure to unanticipated liabilities, any ongoing obligations to support the business following any such disposition, and other adverse financial impacts. The realization of any of these risks could adversely affect our business.
Previous wording
Artificial Intelligence (“AI”) presents new risks and challenges that may affect our business. We have made, and expect to continue to make, investments to integrate AI and machine learning technology into our services. Given the nature of AI technology, we face significant competition from other companies and an evolving regulatory landscape. Our AI efforts may not be successful, and our competitors may incorporate AI into their products more successfully than us, which could impair our ability to compete effectively and adversely affect our financial results. The rapid evolution of AI combined with the uncertain and often inconsistent regulatory landscape may require significant additional resources and costs and could in some cases limit our ability to implement AI capabilities in our solutions or potentially result in the implementation failing to produce the desired outcome. Despite our implementation of programs designed to support responsible AI use and development, we may not successfully address all issues that may arise. For example, privacy concerns, user consent, supply chain security, transparency and the accuracy, completeness and suitability of data sets are all potential issues that could adversely affect our business, reputation or financial results.
Current wording
Artificial intelligence presents new risks and challenges that may affect our business. We have made, and expect to continue to make, investments to integrate AI and machine learning technology into our services. Given the nature of AI technology, we face significant competition from other companies and an evolving regulatory landscape. Our AI efforts may not be successful, and our competitors may incorporate AI into their products more successfully than us, which could impair our ability to compete effectively and adversely affect our financial results. The rapid evolution of AI combined with the uncertain and often inconsistent regulatory landscape may require significant additional resources and costs and could in some cases limit our ability to implement AI capabilities in our solutions or potentially result in the implementation failing to produce the desired outcome. Despite our implementation of programs designed to support responsible AI use and development, we may not successfully address all issues that may arise. For example, privacy concerns, user consent, supply chain security, transparency and the accuracy, completeness and suitability of data sets are all potential issues that could adversely affect our business, reputation or financial results.
Previous wording
● global economic and political conditions and related risks, including acts of terrorism, war, such as the war in Ukraine and the conflict in the Middle East, pandemics, inflation, slowing growth, rising interest rates and recession; and
Current wording
● global economic and political conditions and related risks, including acts of terrorism, war, pandemics, inflation, slowing growth, rising interest rates and recession; and
Previous wording
Our 25 largest clients accounted for approximately 30% and 33% of revenue in 2024 and 2023, respectively. If one or more of our large clients terminate, significantly reduce their engagement or fail to remain a viable business, then our revenues could be materially and adversely affected. In addition, sizable receivable balances could be jeopardized if large clients fail to remain a going concern.
Current wording
Our 25 largest clients accounted for approximately 30% of revenue in both 2025 and 2024. If one or more of our large clients terminate, significantly reduce their engagement or fail to remain a viable business, then our revenues could be materially and adversely affected. In addition, sizable receivable balances could be jeopardized if large clients fail to remain a going concern.
Previous wording
The success of our business is dependent upon the continued service of a relatively small group of key executives, including Michael P. Connors, Chairman and Chief Executive Officer; Todd D. Lavieri, Vice Chairman and President – ISG Americas and Asia Pacific; Michael A. Sherrick, Executive Vice President and Chief Financial Officer; and Thomas S. Kucinski, Executive Vice President and Chief Human Resources Officer, among others.
Current wording
The success of our business is dependent upon the continued service of a relatively small group of key executives, including Michael P. Connors, Chairman and Chief Executive Officer; Todd D. Lavieri, Vice Chairman and President – ISG Americas and Asia
Previous wording
Approximately 36% of our revenues for 2024 and 39% of our revenue for 2023 were derived from sales outside of the Americas. Our operating results are subject to the risks inherent in international business activities, including:
Current wording
Approximately 34% of our revenues for 2025 and 36% of our revenues for 2024 were derived from sales outside of the Americas. Our operating results are subject to the risks inherent in international business activities, including:
Previous wording
● crime, strikes, riots, civil disturbances, pandemics, terrorist attacks and wars, such as the war in Ukraine and the conflict in the Middle East;
Current wording
● crime, strikes, riots, civil disturbances, pandemics, terrorist attacks and wars;
Previous wording
Data protection laws and self-regulatory codes may restrict our activities and increase our costs.
Current wording
Data protection and emerging cybersecurity laws and self-regulatory codes may restrict our activities and increase our costs.
Previous wording
Various statutes and rules regulate conduct in areas such as privacy and data protection that may affect our collection, use, storage, and transfer of information both abroad and in the United States. Compliance with these laws and self-regulatory codes may require us to make certain investments or may dictate that we not offer certain types of services or only offer such services after making necessary modifications. Failure to comply with these laws and self-regulatory codes may result in, among other things, civil and criminal liability, negative publicity, restrictions on further use of data and/or liability under contractual warranties.
Current wording
Various statutes and rules regulate conduct in areas such as privacy, data protection, and cybersecurity that may affect our collection, use, storage, and transfer of information both abroad and in the United States. Compliance with these laws and self-regulatory codes may require us to make certain investments or may dictate that we not offer certain types of services or only offer such services after making necessary modifications. Moreover, these laws and regulations impose operational requirements, including disclosures to consumers about personal data practices, opt-out and consent choices and required contractual terms with certain third parties, and obligations to provide notice to individuals, third parties, and/or regulators in the event of certain cybersecurity incidents involving personal data. Failure to comply with these laws and self-regulatory codes may result in, among other things, civil and criminal liability, negative publicity, restrictions on further use of data, fines, and/or liability under contractual warranties.
Previous wording
In addition, there is an increasing public concern regarding data and consumer protection issues, with the result that the number of jurisdictions with data protection laws continues to increase and the scope of existing privacy laws and the data considered to be covered by such laws keeps expanding. Changes in these laws (including newly released interpretations of these laws by courts and regulatory bodies) may limit our client data access, use and disclosure, and may require increased expenditures by us or may dictate that we may not offer certain types of services.
Current wording
In addition, there is an increasing public concern regarding data and consumer protection issues, with the result that the number of jurisdictions with data protection laws continues to increase and the scope of existing privacy laws and the data considered to be covered by such laws keeps expanding. Changes in these laws (including newly released interpretations of these laws by courts and regulatory bodies)
Previous wording
As a global company, ISG must comply with various international and domestic data privacy regulations such as (i) the EU and UK General Data Protection Regulation (“GDPR”), which has extra-territorial scope and substantial fines for breaches (up to 4% of global annual revenue or €20 million, whichever is greater), (ii) the California Consumer Privacy Act, which, unlike data privacy provisions enacted by other US states, covers individuals acting in a commercial or employment context not just as consumers, and (iii) the Australian Privacy Act, among others. In addition, the new India Digital Personal Data Protection Act 2023 (“DPDP”) draft rules are out for consultation, which closed in February 2025. The DPDP is anticipated to come into force within two years. Like the GDPR, the DPDP has extra-territorial reach. The DPDP shares many provisions with existing privacy laws, and ISG therefore anticipates that its existing processes already broadly align with the new law. However, like the GDPR, failure to comply with the DPDP may lead to substantial fines. ISG is continuing to monitor the development of the EU’s ePrivacy Regulation and published guidelines to determine whether further action as required.
Current wording
As a global company, ISG must comply with various international and domestic data privacy regulations such as (i) the EU and UK General Data Protection Regulation (“GDPR”), which has extra-territorial scope and substantial fines for breaches (up to 4% of global annual revenue or €20 million, whichever is greater), (ii) the California Consumer Privacy Act, which, unlike data privacy provisions enacted by other US states, covers individuals acting in a commercial or employment context not just as consumers, and (iii) the Australian Privacy Act, among others. In addition, India’s Ministry of Electronics and Information Technology notified the Digital Personal Data Protection Rules 2025 (the “Rules”) November 13, 2025, operationalizing the Digital Personal Data Protection Act 2023 (“DPDPA”) enacted by the Parliament of India in August 2023. Companies operating in India must meet the DPDPA’s core compliance obligations, which includes reporting data breaches within seventy-two hours, appointing consent managers and data protection officers, and implementing systems for express user permission, within a phased twelve-to-eighteen-month timeline. Like the GDPR, the DPDPA has extra-territorial reach. The DPDPA shares many provisions with existing privacy laws, and ISG therefore anticipates that its existing processes already broadly align with the law. However, like the GDPR, failure to comply with the DPDPA may lead to substantial fines. ISG is also continuing to monitor the development of and public guidelines regarding the EU’s ePrivacy Regulation to determine whether further action is required.
Previous wording
A significant portion of our business is conducted over the internet, and we rely on the secure processing, storage and transmission of confidential, sensitive, proprietary and other types of information relating to our business operations and confidential and sensitive information about our clients and employees in our computer systems and networks, and in those of our third-party vendors. Individuals, groups and state-sponsored organizations may take steps that pose threats to our operations, our computer systems, our employees, and our clients. The cybersecurity risks we face range from cyberattacks common to most industries, such as the development and deployment of malicious software to gain access to our networks and attempt to steal confidential information, launch distributed denial of service attacks or attempts at other coordinated disruptions, to more advanced threats that target us because of our prominence in the global research and advisory field. Ransomware risk has increased significantly in recent years and presents a significant risk of financial extortion and loss of data. Our operating model allows employees to continue to work remotely or on a hybrid basis, which magnifies the importance of the integrity of our remote access security measures.
Current wording
A significant portion of our business is conducted over the internet, and we rely on the secure processing, storage and transmission of confidential, sensitive, proprietary and other types of information relating to our business operations and confidential and sensitive information about our clients and employees in our computer systems and networks, and in those of our third-party vendors. Individuals, groups, state-sponsored organization, and actors utilizing AI may take steps that pose threats to our operations, our computer systems, our employees, and our clients. The cybersecurity risks we face range from cyberattacks common to most industries, such as the development and deployment of malicious software to gain access to our networks and attempt to steal confidential information, launch distributed denial of service attacks or attempts at other coordinated disruptions, to more advanced threats that target us because of our prominence in the global research and advisory field. Ransomware risk has increased significantly in recent years and presents a significant risk of financial extortion and loss of data. Our operating model allows employees to continue to work remotely or on a hybrid basis, which magnifies the importance of the integrity of our remote access security measures.
Previous wording
We also face risks related to our use of third-party suppliers if such suppliers are affected by a cybersecurity threat or incident, which could result in a reduction in or loss of their ability to service us (which could be a significant component of our services to clients), the exposure of ISG or client data or a potential backdoor into ISG’s systems and network.
Current wording
We also face risks related to our use of third-party suppliers, with whom we may share data and operational systems. If such suppliers are affected by a cybersecurity threat or incident, it could result in not only a reduction in or loss of their ability to service us (which could be a significant component of our services to clients) but also the exposure of ISG or client data or a potential backdoor into ISG’s systems and network.
Previous wording
Most of our service contracts with clients contain service level and performance requirements, including requirements relating to the quality of our services. Failure to consistently meet the service requirements of a client or errors made by our employees while delivering services to our clients could disrupt the client’s business and result in a reduction in revenues or a claim for damages against us. Additionally,
Current wording
Most of our service contracts with clients contain service level and performance requirements, including requirements relating to the quality of our services. Failure to consistently meet the service requirements of a client or errors made by our employees while delivering services to our clients could disrupt the client’s business and result in a reduction in revenues or a claim for damages against us. Additionally, we could incur liability if a process we manage for a client was to result in internal control failures or impair our client’s ability to comply with their own internal control requirements.
Previous wording
Although we seek to prevent, detect, and investigate cybersecurity threats and incidents, and have taken steps to mitigate the likelihood of network security breaches, there can be no assurance that attacks by unauthorized users will not be attempted in the future or that our security measures will be effective. Unauthorized disclosure of sensitive or confidential client data, whether through breach of our processes, systems or otherwise, could subject us to liability, damage our reputation and cause us to lose existing and potential clients. We may also be subject to civil actions and/or criminal prosecution by government or quasi-government agencies for breaches relating to such data. Our insurance coverage for breaches or mismanagement of such data may not continue to be available on reasonable terms or in sufficient amounts to cover one or more large claims against us.
Current wording
that our security measures will be effective. Unauthorized disclosure of sensitive or confidential client data, whether through breach of our processes, systems or otherwise, could subject us to liability, damage our reputation and cause us to lose existing and potential clients. We may also be subject to civil actions and/or criminal prosecution by government or quasi-government agencies for breaches relating to such data. Our insurance coverage for breaches or mismanagement of such data may not continue to be available on reasonable terms or in sufficient amounts to cover one or more large claims against us.
Previous wording
Pursuant to rules adopted by the SEC implementing Section 404 of the Sarbanes Oxley Act of 2002, we are required to assess the effectiveness of our internal control over financial reporting and provide a management report on our internal control over financial reporting
Current wording
Pursuant to rules adopted by the SEC implementing Section 404 of the Sarbanes Oxley Act of 2002, we are required to assess the effectiveness of our internal control over financial reporting and provide a management report on our internal control over financial reporting in all annual reports. This report contains, among other matters, a statement as to whether or not our internal control over financial reporting is effective and the disclosure of any material weaknesses in our internal control over financial reporting identified by management.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
amendment or waiver could be significant, and further, there can be no assurance that we would be able to obtain an amendment or waiver. If our lenders were unwilling to enter into an amendment or provide a waiver, all amounts outstanding under our credit facility would become immediately due and payable.
Current report — wording carried from elsewhere
Pacific; Michael A. Sherrick, Executive Vice President and Chief Financial Officer; and Thomas S. Kucinski, Executive Vice President and Chief Human Resources Officer, among others.
Current report — wording carried from elsewhere
may limit our client data access, use and disclosure, and may require increased expenditures by us or may dictate that we may not offer certain types of services.
Current report — wording carried from elsewhere
We are exposed to risks related to artificial intelligence.
Current report — wording carried from elsewhere
Although we seek to prevent, detect, and investigate cybersecurity threats and incidents, and have taken steps to mitigate the likelihood of network security breaches, there can be no assurance that attacks by unauthorized users will not be attempted in the future or
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
business, our management may be required to expend time and attention to address the problems, which would divert their time and attention from other aspects of our business.
Previous report — wording carried elsewhere
we could incur liability if a process we manage for a client was to result in internal control failures or impair our client’s ability to comply with their own internal control requirements.
Previous report — wording carried elsewhere
in all annual reports. This report contains, among other matters, a statement as to whether or not our internal control over financial reporting is effective and the disclosure of any material weaknesses in our internal control over financial reporting identified by management.