Among other noteworthy updates and reminders, Fenwick shared examples of executive security risk-related disclosures included in recently filed Form 10-Ks. Relevant excerpts are as follows:
Nasdaq (p30)
Risk Factor: Unforeseen or catastrophic events could interrupt our critical business functions. In addition, our U.S. and European businesses are heavily concentrated in particular areas and may be adversely affected by events in those areas.
Given our position in the global capital markets and our brand, we may be more likely than other companies to be a target for malicious disruption activities or physical attacks on our senior leadership team and/or our office locations.
Halozyme Therapeutics (p41)
Risk Factor: Violence, physical attacks or threats of violence directed toward company facilities or key company personnel may disrupt company operations and undermine investor confidence.
Our office and manufacturing facilities face the risk of physical attacks, both threatened and actual, which could negatively impact our ability to conduct day-to-day operations. Despite the implementation of security measures designed to prevent such physical attacks, our facilities are potentially vulnerable to the failure of such security measures due to various causes such as human error or technological failure. If, despite implementation of our security measures, a significant physical attack occurred, our operations could be disrupted for an extended period of time, and we could experience costly property damage, loss of revenues, and other financial loss which could have an adverse impact on our results of operations. Further, if any of our key company personnel were harmed as a result of a physical attack on our facilities or other act of violence, such attack could disrupt our ability to operate our business and undermine investor confidence.
The briefing also flags illustrative ESG-related risk factors. See JPMorgan re: reputational risk (pg. 34), Advanced Micro Devices re: risks of increased costs, reputational harm, and loss of customers (pg. 33), Eli Lilly re: business, brand, and reputational risks (pg. 36), Pinterest re: DEI-focused disclosure in a talent risk factor (pg. 26), and Snowflake re: reputational and business risk (pg. 44).