Ally Financial

-10.81%

1. Market Risk: Like any other stock, Ally Financial has risk exposure to the overall stock market. When the stock market is performing poorly, Ally Financial could suffer a significant reduction in their stock price.

2. Interest Rate Risk: Since Ally Financial’s main service is auto financing, they are highly vulnerable to changes in interest rates. If interest rates rise, Ally Financial may see a decrease in demand for their services as consumers compare financing offers from other lenders that may offer better rates.

3. Regulatory Risk: Ally Financial is subject to a variety of laws and regulations that can affect its operations and results, including those that relate to consumer protection, credit standards, capital requirements, and anti-money-laundering activities. If the company fails to comply with any applicable regulations, it could face significant fines and reputational damage.

4. Credit Risk: Ally Financial is exposed to credit risk due to its auto financing service; when a consumer defaults on a loan, it could have a negative impact on the company’s financial performance. Interest rate risk also plays a role in credit risk, as changes in interest rates can affect repayment rates on loans.