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โ Due DiligenceRisks
1. Competitor Risk: As the tax filing market is highly competitive, the company faces the risk of competition from a wide range of tax preparation vendors. This could reduce H&R Blockโs market share and profits.
2. Data Protection Risk: The data of the clients is a key asset of H&R Block and the company may be exposed to data breaches that could lead to reputation damage and significant financial losses.
3. Regulatory Risk: Changes to the tax laws and regulations brought about by government, could significantly affect the operations and profitability of H&R Block.
4. Technology Risk: The company relies heavily on technology to provide its services, thus technology failures could lead to system disruptions and hefty costs.
5. Currency Risk: H&R Block operates in global markets and is continuously exposed to exchange rate fluctuations which could affect the companyโs profits.