Review of Regulatory Disclosures Case study Analysis
On the other hand, among allthe risk factors identified for both Wells Fargo Company and S&P Global Inc.; the risk factors which are considered highly material include government and regulation and cyber, physical asset, and data security based on the fact that restrictions by the government tend to be a barrier in business growth and increased advancement in use of artificial intelligence has posed a threat of privacy concern. Similarly, corporate finance and operations tend to be not material whereas the rest of the factors fall in the category of material due to the reason that the interaction with stakeholders and business management is greatly affected by corporate growth strategy, competitive landscape, and litigation and liabilities.Additionally, the risk factor i.e. capital market and economic condition are considered highly material for S&P Global Inc. as changes in the economic market affect the growth of the organization influencing the growth rate.
Whereas according to the risk factors of Facebook Inc., the company reputation is considered to be not material. While government and regulation and cyber, physical asset, and data securityare likewise considered highly material based on the same reason discussed for financial services organizations.
Risk factor comparison of financial service and technology:
Considering the difference in the services and business operations, the companies offering their services in the financial service industry and technology might represent varying risk factors. This is based on the fact that financial services are not influenced by consumer power while it greatly impacts the technology industry. Because the companies operating in the technology industry operate with the aim ofimprovingthe user experience in different areas such as communication. While financial services are primarily associated and linked withgreater revenues and profits. However,company reputation, competitive landscape, are considered as a common risk factor due to a large number of players offering their services in both the industriesand cybersecuritydue to increased concern of users, vendors, business organizations regarding the security of their personal information shared with the organization while obtaining their services.
On the other hand, innovation serves as a risk factor in technology not in financial services due to advancements in technological approaches, digitalization, inefficient user interface, and other characteristics.Similarly, the effect of growth strategy on the organization is known to serve asa risk factor for the finance service industry by 100 percent as compared to 0 percent of the technology industry. But, the growth strategy is known to influence the technology industry as well as shown by the risk factors represented by Facebook Inc............................
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