Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 47

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 47
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 transactions processed daily, we are reliant on such third-party provided services to successfully
deliver our products and services. We have highly trained information technology staff that is committed to the continual development
and maintenance of our technology infrastructure. Security measures, including data security programs to protect confidential personal
information, have been implemented and are regularly upgraded. We, together with our third- party service providers, also maintain and
regularly test contingency plans for our technology infrastructure. Notwithstanding these measures, the failure of these systems could
interrupt our operations or materially impact our ability to rapidly evaluate and commit to new business opportunities. If sustained
or repeated, a system failure could result in the loss of existing or potential business relationships, or compromise our ability to
pay claims in a timely manner.

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In addition, a security
breach of our computer systems could damage our reputation or result in liability to persons affected by the breach as well as regulatory
penalties. We retain confidential information regarding our business dealings in our computer systems, including, in some cases, confidential
personal information regarding our insureds. We may be required to spend significant capital and other resources to protect against security
breaches or to alleviate problems caused by such breaches. Any well-publicized compromise of security could deter people from conducting
transactions that involve transmitting confidential information to our systems. Therefore, it is critical that these facilities and infrastructure
remain secure and are perceived by the marketplace to be secure. This infrastructure may be vulnerable to physical break-ins, computer
viruses, programming errors, attacks by third parties or similar disruptive problems. In addition, we could be subject to liability if
hackers were able to penetrate our network security or otherwise misappropriate confidential information.

A disruption of our information technology systems could significantly affect our business.

We rely on information technology
in virtually all aspects of our business. A significant disruption or failure of our information technology systems could result in service
interruptions, safety failures, security violations, regulatory compliance failures, inability to protect information and assets against
intruders, and other operational difficulties. Attacks perpetrated against our information technology systems could result in loss of
assets and critical information, potential breach of privacy laws, expose us to remediation costs, reputational damage, regulatory scrutiny,
litigation and adversely affect our results of operations, financial condition and liquidity.

Cyberattacks, including
those perpetrated through the use of artificial intelligence, could further adversely affect our ability to operate facilities, information
technology and business systems, or compromise confidential