Harris Strategic and meaningful M&A posts difficulties such

Harris Corporation is
subject to various business risks, all of which may add to the likelihood of a
decline of the stock’s price. These risk factors are discussed below:

M Risk                                                                                           

Strategic acquisitions
and divestitures that Harris Corporation have made in the past, may continue
present significant risks and uncertainties to core business activities for Harris
Corporation. Strategic and meaningful M posts difficulties such as:

Difficulty
identifying and evaluating potential acquisitionsProblems
found in the due diligence process of potential acquisitions may not be
fully assessessedExpense
and difficulty integrating newly acquired business and operationsChallenges
in achieving strategic and other cost cutting benefits as a result of an
acquisitionRisk
that assumed liabilities taken on as a result of an acquisition may hinder
the financial stability of Harris as a core businessPotential
loss of key employees or customers of the business being acquired

Operational Risk

Harris Corporation has
several operational risks which can result in a deterioration in the business
and/or financial condition such as:

Downgrade
of credit ratingSince
Harris has a large number of labor union employees, the threat of stoppage
is presentThe
loss of key employees and inability to attract high quality talent Changes
in Government spendingChanges
in effective tax rateUnforeseen
environmental issues

Economic Risk

Harris Corporation is
exposed to the risks associated with foreign currency exchange rates and
changes in interest rates. Harris Corporation deploys procedures and policies
in order to govern and manage the exposure to such economic risks. Harris
Corporation also operates in markets with uncertain economic conditions. These
uncertain conditions play a factor in future forecasts and guidance and may
cause harm to Harris as a firm if certain events materialize. Another important
economic risk that is present is the U.S. budget deficit and national debt.
Because U.S. Government contracts are only partially funded and subject to
immediate termination, a failure to fund can create an adverse impact on the
financial condition of Harris Corporation.

Geopolitical Risk

Cyber
Security

Due to the nature of
Harris Corporation’s core business activities, Harris Corporation is at
significant risk that a security break through cyber attack may cause a
significant disruption of IT networks and other related systems. This possible
event would be detrimental to not only the company’s core business activities
but also the reputation of the firm. Due to the high percentage of revenue
coming from the United States, data security importance is emphasized at Harris
Corporation. Any lapse would have a serious impact on the future financial
condition and stability of the firm.

Geopolitical
landscape

There is ongoing
instability and current conflicts in global markets, there is a present and
future threat of terrorist activity throughout the world. Events in areas such
as the Middle East and Asia have the potential for political unrest and
increased tension with the United States and its allies. Another geopolitical
event which has an impact on Harris Corporation is the voluntary exit of the
United Kingdom from the European Union. All of these events could have a
material adverse effect on Harris Corporation’s business, operations and/or
profitability.

Investment
Risks

Our team has identified
multiple risks which lead us to issuing a hold recommendation. The following
investment risks counter some of the assumptions made about Harris
Corporation’s industry and future growth:

-if there’s a decrease
in military spending

-US GDP growth

-Crude price. A drop in
price will decrease demand from Middle Eastern areas of business

-Highly competitive
industry

-Proprietary technology

-Customers have the
power