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Computacenter (COUD) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Computacenter disclosed 5 risk factors in its most recent earnings report. Computacenter reported the most risks in the “Finance & Corporate” category.

Risk Overview Q4, 2021

Source: the company's latest filing for the period ended Apr 13, 2022, filed Apr 13, 2022

Risk Distribution
5Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

No filing history is available.

Risks removedRisks addedRisks changedComputacenter Risk Factors
  • Manufacturing - Risk 1
    Contractual and Operational Risks

    Alert status Increased risk of loss, corruption or unauthorised disclosure of personal data commensurate with the increased cyber threat. Risks • Lack of effective pre-contract processes, resulting in poor design, costing and pricing • Lack of effective post-contract delivery • Loss, corruption or unauthorised disclosure of personal data • Lack of effective acquisition integration and failure to deliver on acquisition objectives • Failure to meet our commitments or comply with applicable laws and regulations in relation to environmental, social and governance matters Principal impacts • Customer dissatisfaction • Financial penalties • Contract cancellations • Reputational damage • Reduced margins • Loss-making contracts • Reduced service and technical innovation Mitigation • Mandatory governance processes relating to bids and new business take-ons, including risk-based decision-making assessments and new tooling • Board oversight of significant bids • Early Warning System and assurance provided by the Group Quality Management & Assurance function over key bids and delivery programmes • Regular commercial ‘deep dives’ into troubled contracts and challenging transformation projects • Data privacy audit programme • Appropriate due diligence and acquisition integration plans in place, with ongoing monitoring of key risks to ensure success • Board-endorsed sustainability strategy • Climate Committee oversees initiatives to reduce environmental impact (see pages 52 to 61) • TCFD disclosure (see pages 62 to 64) • Strong Company culture and values (see pages 44 to 51) • Oversight by the Compliance Steering Committee • Strong corporate governance, risk management and ethics, including policies and/or training for anti-bribery and corruption, export compliance, competition law, HSE and HR in addition to a whistleblowing hotline Risk owners • Group Delivery Director • Group Commercial Management Director • Group Legal and Compliance Director • Group Development Director • Group Finance Director • Group Chief People Officer

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Risk Highlights Q4, 2021

Main Risk Category
Finance & Corporate
With 2 Risks
Number of Disclosed Risks
5
-1
From last report
S&P 500 Average: 32
Recent Changes
1Risks added
2Risks removed
0Risks changed
Since Apr 2022
Number of Risk Changed
0
No changes from last report
S&P 500 Average: 1

Risk Word Cloud

strategic risksstrategic riskscontractual and operational risksoperational risks

Risk Factors Full Breakdown - Total Risks 5

Accounting & Financial Operations1 | 20.0%
  • Accounting & Financial Operations - Risk 1
    Financial Risk

    Alert status Increased in line with the higher level of inventory held due to chip and other shortages as well as some ERP implementation issues in North America. Risk • Failure to manage working capital effectively Principal impacts • Financial impact through bad debts, obsolete inventory and/or other working capital movements Mitigation • Implementation of debt management best practice, after centralising Europe-wide collection functions at the Budapest finance Shared Service Center (excluding recent North American acquisitions) • Inventory management controls and monitoring • Increasing use of direct delivery Risk owner • Group Finance Director

Corporate Activity and Growth1 | 20.0%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.