HP 2014 Annual Report Download - page 43

deploy viruses, worms, and other malicious software programs that attack our products or otherwise
exploit any security vulnerabilities of our products. In addition, sophisticated hardware and operating
system software and applications that we produce or procure from third-parties may contain defects in
design or manufacture, including ‘‘bugs’’ and other problems that could unexpectedly interfere with the
operation of the system. The costs to us to eliminate or alleviate cyber or other security problems,
bugs, viruses, worms, malicious software programs and security vulnerabilities could be significant, and
our efforts to address these problems may not be successful and could result in interruptions, delays,
cessation of service and loss of existing or potential customers that may impede our sales,
manufacturing, distribution or other critical functions.
We manage and store various proprietary information and sensitive or confidential data relating to
our business. In addition, our outsourcing services business routinely processes, stores and transmits
large amounts of data for our clients, including sensitive and personally identifiable information.
Breaches of our security measures or the accidental loss, inadvertent disclosure or unapproved
dissemination of proprietary information or sensitive or confidential data about us, our clients or
customers, including the potential loss or disclosure of such information or data as a result of fraud,
trickery or other forms of deception, could expose us, our customers or the individuals affected to a
risk of loss or misuse of this information, result in litigation and potential liability for us, damage our
brand and reputation or otherwise harm our business. We also could lose existing or potential
customers of outsourcing services or other IT solutions or incur significant expenses in connection with
our customers’ system failures or any actual or perceived security vulnerabilities in our products and
services. In addition, the cost and operational consequences of implementing further data protection
measures could be significant.
Portions of our IT infrastructure also may experience interruptions, delays or cessations of service
or produce errors in connection with systems integration or migration work that takes place from time
to time. We may not be successful in implementing new systems and transitioning data, which could
cause business disruptions and be more expensive, time-consuming, disruptive and resource intensive.
Such disruptions could adversely impact our ability to fulfill orders and respond to customer requests
and interrupt other processes. Delayed sales, lower margins or lost customers resulting from these
disruptions could reduce our expected revenue, increase our expenses, damage our reputation and
adversely affect our stock price.
Terrorist acts, conflicts, wars and geopolitical uncertainties may seriously harm our business and revenue,
costs and expenses and financial condition and stock price.
Terrorist acts, conflicts or wars (wherever located around the world) may cause damage or
disruption to our business, our employees, facilities, partners, suppliers, distributors, resellers or
customers or adversely affect our ability to manage logistics, operate our transportation and
communication systems or conduct certain other critical business operations. The potential for future
attacks, the national and international responses to attacks or perceived threats to national security,
and other actual or potential conflicts or wars have created many economic and political uncertainties.
In addition, as a major multinational company with headquarters and significant operations located in
the United States, actions against or by the United States may impact our business or employees.
Although it is impossible to predict the occurrences or consequences of any such events, if they occur,
they could result in a decrease in demand for our products, make it difficult or impossible to provide
services or deliver products to our customers or to receive components from our suppliers, create
delays and inefficiencies in our supply chain and result in the need to impose employee travel
restrictions. We are predominantly uninsured for losses and interruptions caused by terrorist acts,
conflicts and wars.
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