Australia and New Zealand Banking Group

-6.28%

1. Economic Risk: ANZ operates in multiple countries and thus is subject to the economic health of those countries. Major changes in the economic environment, such as slowing economic growth, high inflation, changes in interest rates, or a sovereign debt crisis, could all adversely impact the company's revenues and profitability.

2. Political Risk: Political events and changes in government policy can either help or hurt the company's operations, directly or indirectly. Protectionist measures, currency devaluation, and trade embargoes are just some examples of political risk that ANZ may face.

3. Credit Risk: Loan default by customers is a major operational risk for ANZ, as banks are fundamentally based on lending money to customers. Any significant credit defaults will reduce ANZ's profits, as it puts pressure on the bank's loan book.

4. Currency Risk: ANZ is exposed to fluctuations in foreign exchange rates. Many of ANZ's loan and investment portfolios are denominated in foreign currencies, and if local currencies depreciate in value, ANZ may be exposed to additional losses.

5. Systemic Risk: Many of ANZ's customers rely on external sources for financing, and if those sources are to experience major losses or defaults, then it can put strain on ANZ's balance sheet and liquidity.