First Financial Northwest

1. Credit Risk: As a financial institution, First Financial Northwest faces the risk of borrower default on loans and credit products. This risk is heightened during economic downturns or in times of high interest rates.

2. Interest Rate Risk: The company is vulnerable to changes in interest rates, as it earns profit mainly through the spread between the interest on its assets and the interest paid on its liabilities. An increase in interest rates can lead to a reduction in net interest margin and vice versa.

3. Market Risk: First Financial Northwest is exposed to market risk as its investment portfolio is subject to fluctuations in the stock market and interest rates. Any significant decrease in the value of its portfolio could lead to financial losses.

4. Regulatory Risk: The company is subject to various federal and state regulations, including those related to lending practices, capital requirements, and consumer protection. Any changes in regulations can impact the company’s operations and profitability.

5. Technology Risk: First Financial Northwest’s business heavily relies on technology to offer its products and services. Any disruption or failure in its technology infrastructure can result in financial losses and damage to its reputation.

6. Cybersecurity Risk: With a significant amount of personal and financial data stored on its systems, First Financial Northwest faces the risk of cyber attacks and data breaches, which can result in financial losses and reputational damage.

7. Liquidity Risk: The company can face liquidity risk if it is unable to meet its short-term financial obligations. This can be due to a sudden increase in withdrawals or a decrease in deposits.

8. Operational Risk: First Financial Northwest is exposed to operational risks such as fraud, errors, and disruptions in business processes, which can impact its financial performance and damage its reputation.

9. Competitive Risk: The company operates in a highly competitive market, facing competition from other banks and financial institutions. Failure to keep up with competitors’ products and services can lead to a loss of customers and market share.

10. Economic Risk: The performance of First Financial Northwest is closely linked to the overall health of the economy. Economic downturns, fluctuations in the housing market, and changes in consumer spending patterns can all impact the company’s financial performance.