Updating risk factors is an important part of the process of preparing a company’s annual report on Form 10-K or Form 20-F pursuant to the rules of the US Securities and Exchange Commission. Item 503(c) of Regulation S-K requires a plain English explanation of how risks impact the company and its securities. Therefore, now is the right time for calendar-year public companies to review the entirety of their risk factor disclosures to determine if there are any new risks that should be discussed and if there are any existing risk factors that should be modified. This Legal Update discusses some key risk factor topics to consider and related practical considerations.

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