Excessive repetition does not enhance your protection

Before

Item 1A: Risk Factors

The risks described below could materially and adversely affect the Company’s results of operations, financial condition, liquidity and cash flows. These risks are not the only risks that the Company faces. The Company’s business operations could also be affected by additional factors that are not presently known to it or that the Company currently considers not to be material to its operations.

Competitive pressures could adversely affect the Company’s results of operations and financial condition.

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Substantial defaults or a material reduction in purchases of the Company’s products by large customers could have an adverse effect on the Company’s results of operations and financial condition.

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Tax legislation initiatives or challenges to the Company’s tax positions could adversely affect the Company’s results of operations and financial condition.

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Risks generally associated with the Company’s information systems could adversely affect the Company’s results of operations.

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Failure to comply with existing and future regulatory requirements, including DEA operating and security standards, could adversely affect the Company’s results of operations and financial condition.

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Declining economic conditions could adversely affect the Company’s results of operations and financial condition.

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The Company is involved in legal proceedings that could adversely affect the Company’s results of operations and financial condition.

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Circumstances associated with the Company’s acquisition and divestiture strategy could adversely affect the Company’s results of operations and financial condition.

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Before, with commentary

There are two fundamental problems with these headers. First, they are needlessly repetitive. We get it: bad things can affect your results of operations and financial condition. Second, because the drafters focused so much on including the magic words (“could adversely affect…”) they didn’t have space to be specific about what, exactly, the bad things might be. Don’t think this is a problem? Check out this report.

After

Item 1A: Risk Factors

The risks described below could materially and adversely affect the Company’s results of operations, financial condition, liquidity and cash flows. These are not the only risks the Company faces: Our business also could be affected by things we are not presently aware of or that we currently consider immaterial to our operations.

The Company could suffer the adverse effects of intense competitive pressures.

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The Company has a few large customers that generate a significant amount of our revenue.

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We could be subject to adverse changes in the tax laws or challenges to our tax positions.

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The Company’s business and operations depend on the proper functioning of many information systems.

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The Company’s business requires consistent, diligent and rigorous compliance with regulatory and licensing requirements.

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We are susceptible to problems caused by declining economic conditions.

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Because of the nature of our business, the Company is always involved in or susceptible to becoming involved in legal proceedings that could involve significant sums of money and other resources.

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Acquisitions and divestitures are not always as successful as we expect them to be.

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