What risks does SPGI's expense volatility pose?

The volatility of expenses for S&P Global (SPGI) and its subsidiaries, as measured by the Weekly Volatility of Expenses Risk, presents several potential risks:

1. **Financial Instability**: High volatility in expenses can lead to financial instability, as it indicates that the company's spending is not consistent or predictable. This can make it difficult for investors to assess the company's financial health and plan their investments accordingly.
2. **Investor Uncertainty**: Volatility in expenses can create uncertainty among investors, leading to increased volatility in the stock price. Investors may become cautious and sell off their shares if they perceive the company's financial prospects as uncertain, which can further exacerbate the volatility.
3. **Cash Flow Management**: High expense volatility can strain cash flow management. Companies may need to allocate resources to manage unexpected expenses, which can divert funds away from other critical areas such as research and development, capital expenditures, or dividend payments.
4. **Strategic Planning**: Volatility in expenses can make it challenging for companies to plan strategically. It can be difficult to make long-term investments or financial decisions when the cost structure is unpredictable. This can lead to missed opportunities or suboptimal decision-making.
5. **Credit Risk**: For companies with high debt levels, increased expense volatility can lead to higher credit risk. Lenders may view a company with volatile expenses as riskier, as it may be more difficult for the company to service its debt obligations.

In conclusion, the volatility of expenses for S&P Global and its subsidiaries poses risks related to financial instability, investor uncertainty, cash flow management, strategic planning, and credit risk. These risks can have significant implications for the company's financial health and its stakeholders' interests.