Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 49

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 49
---

deliver
products
and
services
to
our
customers
and
otherwise
conduct
our 
business, disrupt
our operations,
result in
potential liability
to clients
and customers,
result in
the imposition
of fines,
penalties or 
judgments by
our regulators,
lead to
exposure of
our information
or that
of our
customers or
harm to
our reputation,
any of
which 
could materially and adversely affect us. The inability of our third-party service providers to timely address cybersecurity threats
may 
further
exacerbate these
risks.
Financial
or
operational difficulties
of
a
third-party
vendor
could
also
hurt
our
operations if
those 
difficulties
interfere
with
the
vendor’s
ability
to
serve
us.
Replacing
these
third-party
vendors,
when
possible,
could
also
create 
significant delay and expense. Accordingly, the use of third parties creates an
unavoidable inherent risk to our business operations. 
The transition to new financial services technology providers, and the replacement of services currently provided to
us by 
Evertec, will be lengthy and complex. 
Switching from
one vendor
of core
bank processing
and related
technology and
security services
to
one
or more
new 
vendors
is
a
complex
process
that
carries
business
and
financial
risks.
The
implementation
cycle
for
such
a
transition
can
be 
lengthy and
require significant
financial and
management resources
from us.
Such a
transition can
also increase
costs (including 

  30 
conversion costs)
and expose
us and
our clients
to business
disruption, as
well as
operational and
cybersecurity risks.
Upon the 
transition of all
or a portion
of existing services
provided by Evertec to
new financial services technology
providers, either (i)
at the 
end of the term of the Second Amended and Restated
Master Services Agreement (the “MSA”) and related
agreements or (ii) earlier 
upon the
termination of any
service for
convenience under the
MSA, these transition
risks could result
in an
adverse effect
on our 
business, financial condition and results of operations. Although Evertec