Seagate 2015 Annual Report Download - page 30
Download and view the complete annual report
Please find page 30 of the 2015 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
moneysupplyorthedeteriorationinthecustomer'soritsbank'sfinancialcondition,ortheinabilitytoaccessotherfinancing.
•GlobalHealthOutbreaks.Theoccurrenceofapandemicdiseasemayadverselyimpactouroperations,andsomeofourkeycustomers.Such
diseasescouldalsopotentiallydisruptthetimelinessandreliabilityofthedistributionnetworkwerelyon.
AccesstoPersonnel.Thereissubstantialcompetitionforqualifiedandcapablepersonnelincertainjurisdictionsinwhichweoperate,includingChina,
whichmaymakeitdifficultforustorecruitandretainqualifiedemployeesinsufficientnumbers.Increaseddifficultyinrecruitingorretainingsufficientand
adequatepersonnelinourinternationaloperationsmayleadtoincreasedmanufacturingandemploymentcompensationcosts,whichcouldadverselyaffectour
resultsofoperations.
Wecouldsufferalossofrevenueandincreasedcosts,exposuretosignificantliability,reputationalharm,andotherseriousnegativeconsequencesifwe
sustaincyber-attacksorotherdatasecuritybreachesthatdisruptouroperationsorresultinthedisseminationofproprietaryorconfidentialinformationabout
usorourcustomersorotherthird-parties.
Ouroperationsaredependentuponourabilitytoprotectourcomputerequipmentandtheelectronicdatastoredinourdatabasesfromdamageby,amongother
things,earthquake,fire,naturaldisasters,accidents,powerdisruptions,telecommunicationsfailures,actsofterrorismorwar,employeemisconduct,physicalor
electronicbreak-ins,cyber-attacks,orsimilareventsordisruptions.Wemanageandstorevariousproprietaryinformationandsensitiveorconfidentialdatarelating
toouroperations.Inaddition,ouroutsourcingservicesandcloudcomputingbusinessesroutinelyprocess,store,andtransmitlargeamountsofdataforour
customersandvendors,includingsensitiveandpersonallyidentifiableinformation.Asouroperationsbecomemoreautomatedandincreasinglyinterdependent,our
exposuretotherisksposedbythesetypesofeventswillincrease.Wehavebeen,andwilllikelycontinuetobe,subjecttocomputervirusesorothermalicious
codes,cyber-attacks,orothercomputer-relatedattemptstobreachtheinformationtechnology("IT")systemsweuseforthesepurposes.Wemayalsobesubjectto
ITsystemfailuresandnetworkdisruptionsduetothesefactors.Experiencedcomputerprogrammersandhackersmaybeabletopenetrateournetworksecurityand
misappropriateorcompromiseourconfidentialinformationorthatofthird-parties,createsystemdisruptions,orcauseshutdowns.Computerprogrammersand
hackersalsomaybeabletodevelopanddeployviruses,worms,andothermalicioussoftwareprogramsthatattackourproductsorotherwiseexploitanysecurity
vulnerabilitiesofourproducts.Inaddition,sophisticatedhardwareandoperatingsystemsoftwareandapplicationsthatweproduceorprocurefromthird-parties
maycontaindefectsindesignormanufacture,including"bugs"andotherproblemsthatcouldunexpectedlyinterferewiththeoperationofthesystem.
Thecoststoustoeliminateoraddresstheforegoingsecurityproblemsandsecurityvulnerabilitiesbeforeorafteracyber-incidentcouldbesignificant.System
redundancymaybeineffectiveorinadequate,andourdisasterrecoveryplanningmaynotbesufficientforalleventualities.Ourremediationeffortsmaynotbe
successfulandcouldresultininterruptions,delays,orcessationofservice,andlossofexistingorpotentialcustomersthatmayimpedeoursales,manufacturing,
distribution,orothercriticalfunctions.WecouldloseexistingorpotentialcustomersforoutsourcingservicesorotherITsolutionsinconnectionwithanyactualor
perceivedsecurityvulnerabilitiesinourproducts.Inaddition,breachesofoursecuritymeasuresandtheunapproveddisseminationofproprietaryinformationor
sensitiveorconfidentialdataaboutusorourcustomersorotherthird-parties,couldexposeus,ourvendorsandcustomers,orotherthird-partiesaffectedtoariskof
lossormisuseofthisinformation,resultinlitigationandpotentialliabilityforus,damageourbrandandreputation,orotherwiseharmourbusiness.Inaddition,we
relyincertainlimitedcapacitiesonthird-partydatamanagementproviderswhosepossiblesecurityproblemsandsecurityvulnerabilitiesmayhavesimilareffects
onus.
27