MMC Marsh & Mclennan Companies, Inc.

Risks

• RISKS RELATING TO THE COMPANY GENERALLY
• Our business performance and growth plans could be negatively affected if we are not able to develop and implement improvements in technology or respond effectively to the threat of digital disruption and other technological change.
• We could incur significant liability or our reputation could be damaged if our information systems are breached or we otherwise fail to protect client or Company data or information systems.
• The costs to comply with, or our failure to comply with, U.S. and foreign laws related to privacy, data security and data protection, such as the E.U. General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), could adversely affect our financial condition, operating results and our reputation.
• We are subject to significant uninsured exposures arising from errors and omissions, breach of fiduciary duty and other claims.
• We are subject to regulatory investigations, reviews and other inquiries that consume significant management time and, if determined unfavorably to us, could have a material adverse effect on our business, results of operations or financial condition.
• We cannot guarantee that we are or will be in compliance with all current and potentially applicable U.S. federal and state or foreign laws and regulations, and actions by regulatory authorities or changes in legislation and regulation in the jurisdictions in which we operate could have a material adverse effect on our business.
• Our business or reputation could be harmed by our reliance on third-party providers or introducers.
• We face risks when we acquire businesses, including risks relating to our integration of JLT.
• The loss of members of our senior management team or other key colleagues could have a material adverse effect on our business.
• Failure to maintain our corporate culture could damage our reputation.
• We face significant competitive pressures in each of our businesses, including from disintermediation, as our competitive landscape continues to evolve.
• Consolidation in the industries we serve could adversely affect our business.
• We rely on a large number of vendors and other third parties to perform key functions of our business operations and to provide services to our clients. These vendors and third parties may act in ways that could harm our business.
• Our inability to successfully recover should we experience a disaster or other business continuity or data recovery problem could cause material financial loss, loss of human capital, regulatory actions, reputational harm or legal liability.
• Our results of operations and investments could be adversely affected by macroeconomic conditions, political events and market conditions.
• If we are unable to collect our receivables, our results of operations and cash flows could be adversely affected.
• We may not be able to obtain sufficient financing on favorable terms.
• Our defined benefit pension plan obligations could cause the Company's financial position, earnings and cash flows to fluctuate.
• Our significant non-U.S. operations expose us to exchange rate fluctuations and various risks that could impact our business.
• We may not be able to receive dividends or other distributions in needed amounts from our subsidiaries.
• Our quarterly revenues and profitability may fluctuate significantly.
• Credit rating downgrades would increase our financing costs and could subject us to operational risk.
• We have significantly increased our debt as a result of the JLT acquisition, which could adversely affect our financial flexibility.
• The ongoing effects from the 2017 Tax Cuts and Jobs Act continue to make our results more difficult to predict.
• We are exposed to multiple risks associated with the global nature of our operations.
• Results in our Risk and Insurance Services segment may be adversely affected by a general decline in economic activity.
• Volatility or declines in premiums and other market trends may significantly impede our ability to grow revenues and profitability.
• Adverse legal developments and future regulations concerning how intermediaries are compensated by insurers or clients, as well as allegations of anti-competitive behavior or conflicts of interest more broadly, could have a material adverse effect on Marsh’s business, results of operations and financial condition.
• RISKS RELATING TO OUR CONSULTING SEGMENT
• Mercer’s Investments business is subject to a number of risks, including risks related to third-party investment managers, operational risk, conflicts of interest, asset performance and regulatory compliance, that, if realized, could result in significant damage to our business.
• Revenues for the services provided by our Consulting segment may decline for various reasons, including as a result of changes in economic conditions, the value of equity, debt and other asset markets, our clients’ or an industry's financial condition or government regulation or an accelerated trend away from actively managed investments to passively managed investments.
• Factors affecting defined benefit pension plans and the services we provide relating to those plans could adversely affect Mercer.
• The profitability of our Consulting segment may decline if we are unable to achieve or maintain adequate utilization and pricing rates for our consultants.