Valvoline Inc (VVV) has disclosed a new risk, in the Technology category.
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Valvoline Inc. faces significant business risks due to the recent implementation of its new enterprise resource planning (ERP) system, which has revealed material weaknesses in internal controls over financial reporting. The system’s deficiencies have disrupted business processes, including timely processing of invoices and billings, although no material impacts on retail operations have been observed yet. The transition exposes Valvoline to further risks such as information loss, unauthorized access, and integration challenges, necessitating substantial personnel and financial investments for remediation. While management has made progress in addressing these issues, there is no assurance that all risks will be mitigated, potentially affecting operating results, stock trading prices, and internal control effectiveness.
Overall, Wall Street has a Strong Buy consensus rating on VVV stock based on 7 Buys and 2 Holds.
To learn more about Valvoline Inc’s risk factors, click here.