Risk Factor Analysis - New & Changing Word Analytics

Quick Link: Identifying New & Changing Risk Factors in the Latest 10-K Filings

SEC 10-Ks filed by US public companies contain a rich set of information on a company's risks. However, these risks are provided in an unstructured and non-standard written description in the 10-K's "Item 1A. Risk Factor" section. This makes analysis of the risk factors, especially as they change over time, difficult and time consuming.

Novel Word Analytics

The Boardroom Alpha platform accelerates 10-K risk factor analysis using "novel word" analytics. 

To do this, the platform analyzes every risk disclosure section to identify rare or never before used words. These novel words can modify existing risk factors (e.g. “rising” interest rates) or expose entirely new risks (e.g. “generative” AI). This method provides potent insights, revealing unique challenges at the individual company level, such as a healthcare grappling with risks related to the banking system when events like the Silicon Valley and Signature Banks occured. Simultaneously, it unveils overarching trends across a spectrum of companies, showcasing the profound impacts of transformative technologies like generative AI.

For every risk factor section, the platform identifies the novel words and provides a quick view of the context surrounding that word. This massively accelerates analysis and ensures analysts don't miss any important risk factor evolution.

Example Screenshot

Here is an example screenshot (just 2 rows of a larger table) pulled from a recent United Healthcare 10-K Item 1A Risk Factor section:

Where to Find Risk Factor Analytics

On every company's filings tab, you'll see a new sub-tab titled: "RISK FACTOR ANALYSIS".