State Street

0.5%

1. Regulatory Risks: State Street operates in a highly regulated environment. Due to the nature of its business, the company must comply with various state, federal and international laws and regulations. Any failure to adhere to such regulations or any changes to regulations could result in penalties, fines or increased operational costs.

2. Market Risk: State Street’s financial performance and profitability can be impacted by changes in the global markets. In addition, the company may face fluctuations in interest and foreign exchange rates, which could reduce its ability to generate revenue.

3. Reputational Risk: State Street’s reputation is one of its most valuable assets but it is also at risk, especially in the event of a data breach or cyber attack. A loss of confidence in the company’s security measures could lead to a significant decline in business.

4. Operational Risks: State Street is exposed to operational risks such as operational inefficiencies and disruptions due to the complexity of its IT systems and global operations. These risks can lead to significant losses and unacceptable delays in client service delivery.