AmazonScience/document-haystack

1instruments, which may not effectively or completely reduce our risk; and assumptions underlying models used to measure 2accumulations and support reinsurance purchases may prove inaccurate and could leave us exposed to larger than expected 3catastrophe losses in a given year. In addition, our current business continuity and disaster recovery plans may not be sufficient to 4reduce the impact of pandemics, a major cyber attack, including ransomware, and other natural or man-made catastrophic events that 5are beyond our anticipated thresholds or impact tolerances. Other risk management methods depend upon the evaluation of 6information regarding markets, clients, or other matters that is publicly available or otherwise accessible to us, which may not always 7be accurate, complete, up-to-date or properly evaluated. Management of operational, legal and regulatory risks requires, among other 8things, policies and procedures to record and verify large numbers of transactions and events in each jurisdiction in which we operate. 9Jurisdictions have unique requirements with respect to artificial intelligence and environmental, social and governance matters, which 10may impact the efficacy of our standardized risk management tools and techniques and therefore our policies and procedures may 11not be fully effective. Accordingly, our risk management policies and procedures may not adequately mitigate the risks to our 12business, results of operations, financial condition and liquidity.13If our risk management policies and procedures are ineffective, we may suffer unexpected losses and could be materially adversely 14affected. As our businesses change and the markets in which we operate evolve and new risks emerge, including risks posed by the 15rapidly developing technology associated with artificial intelligence and the implementation thereof within our operations, by our third-16party vendors and by competitors and unanticipated challenges with respect thereto. As a result, there is a risk that new products or 17new business strategies may present risks that are not appropriately identified, monitored or managed. The effectiveness of our risk 18management strategies may be limited, resulting in losses, because of market stress, unanticipated financial market movements or 19unanticipated claims experience from adverse mortality, morbidity or policyholder behavior. In addition, there can be no assurance 20that we can effectively review and monitor all risks or that all of our employees will understand and follow (or comply with) our risk 21management policies and procedures.22Our foreign operations expose us to risks that may affect our operations. 23AIG provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their 24assets and manage risks through AIG operations and network partners. A substantial portion of our business is conducted outside the 25United States, and we intend to continue to grow our business in strategic markets. Operations outside the United States have in the 26past been, and may in the future be, affected by elevated climate risks, regional economic downturns, changes in foreign currency 27exchange rates, political events or upheaval, sanctions policies, nationalization and other restrictive government or regulatory actions, 28which could also affect our other operations.29AIG subsidiaries operating in foreign jurisdictions must satisfy local regulatory requirements and it is possible that these local licenses 30may require AIG Parent to meet certain conditions. Licenses issued by foreign authorities to our subsidiaries are subject to 31modification and revocation. Consequently, our insurance subsidiaries could be prevented from conducting future business in some of 32the jurisdictions where they currently operate. Adverse actions from any single country could adversely affect our results of 33operations, depending on the magnitude of the event and our financial exposure at that time in that country. 34AIG is subject to myriad regulations which govern items such as sanctions, bribery and anti-money laundering, for which failure to 35comply could expose us to significant penalties. The USA Patriot Act of 2011 requires companies to know certain information about 36their clients and to monitor their transactions for suspicious activities. The Foreign Corrupt Practices Act makes it unlawful for certain 37classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Also, the 38Department of the Treasury’s Office of Foreign Assets Control administers regulations that restrict or prohibit dealings involving certain 39organizations, individuals and countries. The UK, the EU, Japan and other jurisdictions maintain similar laws and regulations. 40Although we have policies and controls in place that are designed to ensure compliance with these laws, if those controls are 41ineffective and/or an employee or third party fails to comply with applicable laws and regulations, we could suffer civil and criminal 42penalties, including disgorgement, and our business and our reputation could be adversely affected.43We are exposed to certain risks if we are unable to maintain the availability of our critical technology systems and data and 44safeguard the confidentiality and integrity of our data, which could compromise our ability to conduct business and 45adversely affect our consolidated business, results of operations, financial condition and liquidity. 46We use information technology systems, infrastructure and networks and other operational systems to store, retrieve, evaluate and 47use customer, employee and company data and information. Our business is highly dependent on our ability to access these systems 48and networks to perform necessary business functions. In the event of a natural disaster, unauthorized access, a terrorist attack, a 49major cyber attack or other disruption, our systems, networks, and data may be inaccessible to our employees, customers or business 50partners for an extended period of time, and we may be unable to meet our business obligations and regulatory requirements for an 51extended period of time if our data or systems are disabled, manipulated, destroyed or otherwise compromised. Additionally, some of 52our technology systems are older, legacy-type systems that are less efficient and require an ongoing commitment of significant 53resources to maintain or upgrade. Some of these systems cannot be fully protected because of the inability to implement the latest 54security patches. Supply chain disruptions or delays could prevent us from maintaining and implementing changes, updates and 55upgrades to our systems and networks in a timely manner or at all. System and network failures or outages could compromise our 56ITEM 1A | Risk Factors5728 AIG | 2023 Form 10-K58The secret object #2 is a "lamp".