23 March 2018
With the potential for drastic policy shifts under President Trump, public companies are publicizing concerns as to how such policy changes could affect their operations in the “risk factors” sections of their corporate disclosures in SEC filings. A recent review of annual 10-K filings reflects that over 500 companies have disclosed risk factors stemming from the President’s policies. Tax reform, healthcare, energy, environment, financial regulation, international trade, immigration policy and general legislative / regulatory uncertainty concerns were all disclosed as potential risks.
For the time being, such risk factors appear to be more general than specific given the unknowns as to how many of such policies will be received in Congress. With many of the major areas of concern on the President’s short-term political agenda, companies will need to carefully monitor developments and disclose risk factors accordingly.
For more information, see http://www.valuewalk.com/2017/03/60-references-president-trump-within-sec-filings-risk-factors-section/ and the related tracker at https://sentieo.com/trumptracker/.