The software business: your risk model, should you need one.

I was just going back over Microsoft's announcement from January when they announced their "cost cutting initiatives" (it was referenced in a friend's "my last day at Microsoft" email), when I noticed at the bottom the bit about "forward looking statements".

These sections are usually pretty bland and generic - however, what is fascinating is that Microsoft have actually broken out all of their downside risks into a list for everyone to see: check out the list below. If you're running a software business and don't have a risk model, here you go. ;-)

•	challenges to Microsoft’s business model;
•	intense competition in all of Microsoft’s markets;
•	Microsoft’s continued ability to protect its intellectual property rights;
•	claims that Microsoft has infringed the intellectual property rights of others;
•	the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
•	actual or perceived security vulnerabilities in Microsoft products that could reduce revenue or lead to liability;
•	government litigation and regulation affecting how Microsoft designs and markets its products;
•	Microsoft’s ability to attract and retain talented employees;
•	delays in product development and related product release schedules;
•	significant business investments that may not gain customer acceptance and produce offsetting increases in revenue;
•	changes in general economic conditions or the availability of credit that affect the value of our investment portfolio or demand for Microsoft’s products and services;
•	adverse results in legal disputes;
•	unanticipated tax liabilities;
•	quality or supply problems in Microsoft’s consumer hardware or other vertically integrated hardware and software products;
•	impairment of goodwill or amortizable intangible assets causing a charge to earnings;
•	exposure to increased economic and regulatory uncertainties from operating a global business;
•	geopolitical conditions, natural disaster, cyberattack or other catastrophic events disrupting Microsoft’s business;
•	acquisitions and joint ventures that adversely affect the business;
•	improper disclosure of personal data could result in liability and harm to Microsoft’s reputation;
•	outages and disruptions of online services if Microsoft fails to maintain an adequate operations infrastructure;
•	sales channel disruption, such as the bankruptcy of a major distributor; and
•	Microsoft’s ability to implement operating cost structures that align with revenue growth.