Intense Competition: The market for HR and benefits administration services is highly competitive, with numerous established and emerging players, which could impact Alight's market share and pricing power.

Data Security Breaches: Handling vast amounts of sensitive client and employee data exposes Alight to significant risks of cyberattacks, data breaches, and privacy violations, leading to reputational damage, financial penalties, and loss of client trust.

Regulatory Compliance Changes: Alight operates in a highly regulated environment, and changes in laws related to healthcare, benefits, payroll, data privacy, and employment could necessitate costly adjustments to its services or lead to non-compliance penalties.