AmazonScience/document-haystack

1privacy and security laws and regulations, we may be subject to additional potential private consumer, business partner or securities 2litigation, regulatory inquiries, and governmental investigations and proceedings, including class-actions. Any such developments may 3damage our reputation and subject us to material fines and other monetary penalties and damages, divert management’s time and 4attention, and lead to enhanced regulatory oversight, any of which could have a material adverse effect on our business, results of 5operations, financial condition and liquidity. Additionally, we expect that developments in privacy and cybersecurity worldwide will 6increase the financial and reputational implications following a significant breach of our or our third-party suppliers’ information 7technology systems. For additional information on data protection and cybersecurity regulations, see Item 1. Business – Regulation – 8Privacy, Data Protection, Cybersecurity and Artificial Intelligence Requirements, and Part II, Item 7. MD&A – Enterprise Risk 9Management – Operational Risk Management – Cybersecurity Risk.10Third parties we rely upon to provide certain business and administrative services on our behalf may not perform as 11anticipated, which could have an adverse effect on our business and results of operations.12We have used and will continue to use outsourcing strategies and third-party providers to transform operational and back office 13processes and deliver contracted services in a broad range of areas. Such areas include, but are not limited to, administration or 14servicing of certain policies and contracts, finance, actuarial, information technology services related to infrastructure, and investment 15advisory and management services for certain funds, plans and retail advisory programs we offer, as well as our own investments. In 16addition, we have engaged with BlackRock for use of its investment management and risk analytics technology platform, Aladdin. The 17implementation of Aladdin is comprised of multiple workstreams that are complex and require significant time and resource 18prioritization. While we have achieved key milestones in the implementation of the technology, there could be delays due to lack of 19sufficient resources to execute on a timely basis, inefficiencies stemming from changes that may be required to the program or 20sequencing, failure to meet operational and financial targets due to additional priorities or other factors. These risks may impair our 21ability to achieve anticipated improvements in our businesses may disrupt or may otherwise harm our operations which could 22materially and adversely affect our businesses, financial condition and operations.23Further, we have engaged Blackstone and BlackRock to serve as our investment managers for the majority of AIG’s investment 24assets. For information regarding our reliance on Blackstone and BlackRock as a third-party investment managers, see Investment 25Portfolio and Concentration of Investments – “We rely on investment management and advisory arrangements with third-party 26investment managers for the majority of our investment portfolio. The historical performance of Blackstone, BlackRock or any other 27asset manager we engage should not be considered as indicative of the future results of our investment portfolio, our future results or 28any returns expected on AIG Common Stock” above.29Some of the third-party providers we use are located outside the U.S., which exposes us to business disruptions and political risks 30inherent to conducting business outside of the U.S. We periodically negotiate provisions and renewals of these relationships, and 31there can be no assurance that such terms will remain acceptable to us, such third parties or regulators. If such third-party providers 32experience disruptions, fail to meet applicable licensure requirements, do not perform as anticipated or in compliance with applicable 33laws and regulations, terminate or fail to renew our relationships, or such third-party providers in turn rely on services from another 34third-party provider, who experiences such disruptions, licensure failures, nonperformance or noncompliance, termination or non- 35renewal of its contractual relationships, we may experience operational difficulties, an inability to meet obligations (including, but not 36limited to, contractual, legal, regulatory or policyholder obligations), a loss of business, increased costs or reputational harm, 37compromises to our data integrity, or suffer other negative consequences, all of which may have a material adverse effect on our 38business, consolidated results of operations, liquidity and financial condition. Third parties performing regulated activities on our 39behalf, such as sales and servicing of insurance products, pose a heightened risk as we may be held accountable for third-party 40conduct that is not in compliance with applicable law.41For information regarding cyber risk arising from third-party providers, see Business and Operations – “We are exposed to certain 42risks if we are unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and 43integrity of our data, which could compromise our ability to conduct business and adversely affect our consolidated business, results 44of operations, financial condition and liquidity” above.45We may experience difficulty in marketing and distributing products through our current and future distribution channels 46and the use of third parties may result in additional liabilities. 47We maintain relationships with a number of key distributors, which results in certain distributor concentration. Distributors have in the 48past, and may in the future, elect to renegotiate the terms of existing relationships, such that those terms may not remain attractive or 49acceptable to us, limit the products they sell, including the types of products offered by us, or otherwise reduce or terminate their 50distribution relationships with us, with or without cause. This could be due to various reasons, such as industry consolidation of 51distributors or other industry changes that increase the competition for access to distributors, developments in laws or regulations that 52affect our business or industry, including the marketing and sale of our products and services, adverse developments in our business, 53the distribution of products with features that do not meet minimum thresholds set by the distributor, strategic decisions that impact 54our business, adverse rating agency actions or concerns about market-related risks.55ITEM 1A | Risk Factors5630 AIG | 2023 Form 10-K57The secret object #4 is an "umbrella".