BlackRock (BLK) risk factors: FY2025 10-K

1. Changes in the value levels of equity, debt, real assets, commodities, foreign exchange or other asset markets, including from the impact of global trade policies and tariffs, may cause assets under management (“AUM”), revenue and earnings to decline.Tariffs
2. Changes in interest or foreign exchange rates and/or global markets may impact BlackRock’s AUM, base fees as well as net income and operating cash flows.new
3. BlackRock’s investment advisory contracts may be terminated or may not be renewed by clients and fund boards on favorable terms and the liquidation of certain funds may be accelerated at the option of investors.
4. The failure or negative performance of products offered by competitors may cause AUM in similar BlackRock products to decline irrespective of BlackRock’s performance.
5. Increased competition may cause BlackRock’s AUM, revenue and earnings to decline.
6. Failure to maintain Aladdin’s competitive position in a dynamic market could lead to a loss of clients and could impede BlackRock’s productivity and growth.
7. BlackRock may be unable to develop new products and services and the development of new products and services may expose BlackRock to reputational harm, additional costs or operational risk.
8. Changes in the value of seed and co-investments that BlackRock owns could affect its income and could increase the volatility of its earnings.
9. BlackRock indemnifies certain securities lending clients for specified losses as a result of a borrower default.
10. BlackRock’s decision on whether to provide support to particular investment products from time to time, or the inability to provide support, may cause AUM, revenue and earnings to decline.
11. Geopolitical unrest and other events outside of BlackRock’s control could adversely affect the global economy and specific international, regional and domestic markets, which may cause BlackRock’s AUM, revenue and earnings to decline.reworded
12. Climate-related risks could adversely affect BlackRock’s business, products, operations and clients, which may cause BlackRock’s AUM, revenue and earnings to decline.

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1. Poor investment performance could lead to the loss of clients and may cause AUM, revenue and earnings to decline.
2. Performance fees may increase volatility of both revenue and earnings.
3. Failure to identify errors in the quantitative models BlackRock utilizes to manage its business could adversely affect product performance and client relationships.

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1. A failure in, or disruption to, BlackRock’s operations, systems or infrastructure, including business continuity plans, could adversely affect operations, damage the Company’s reputation and cause BlackRock’s AUM, revenue and earnings to decline.
2. A cyber-attack or a failure to implement effective information and cybersecurity policies, procedures and capabilities could disrupt operations and lead to financial losses and reputational harm, which may cause BlackRock’s AUM, revenue and earnings to decline.Cybersecurity
3. Failure or unavailability of third-party dependencies may adversely affect Aladdin operations, which could cause reputational harm, lead to a loss of clients and impede BlackRock’s productivity and growth.
4. Continuing enhancements to Aladdin’s capabilities, as well as the expansion of the Aladdin platform into new markets and geographies, have led to significant growth in Aladdin’s processing scale, which may expose BlackRock to reputational harm, increased regulatory scrutiny and heightened operational, data management, cyber- and information security risks.Cybersecurity
5. A failure to effectively manage the development and use of AI, combined with an evolving regulatory environment, could have an adverse effect on BlackRock’s growth, reputation or business.AI
6. Failure to maintain adequate corporate and contingent liquidity may cause BlackRock’s AUM, liquidity and earnings to decline, as well as harm its prospects for growth.
7. Operating risks associated with BlackRock’s securities lending program may result in client losses.
8. Inorganic transactions may harm the Company’s competitive or financial position if they are not successful.
9. BlackRock is subject to risks associated with its recent acquisitions, including any failure to realize anticipated benefits of such acquisitions.reworded
10. BlackRock's alternatives products include investments in early-stage companies, private equity portfolio companies, private credit and real assets, such as real estate, infrastructure and energy assets, which expose BlackRock and its funds and accounts to new or increased risks and liabilities, as well as reputational harm.reworded
11. Operating in international markets increases BlackRock’s operational, political, regulatory and other risks.

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1. The potential for human error in connection with BlackRock’s operational systems could disrupt operations, cause losses, lead to regulatory fines or damage the Company’s reputation and may cause BlackRock’s AUM, revenue and earnings to decline.
2. Fraud, the circumvention of controls or the violation of risk management and workplace policies could have an adverse effect on BlackRock’s reputation, which may cause the Company’s AUM, revenue and earnings to decline.
3. The failure to recruit, train and retain employees and develop and implement effective executive succession could lead to the loss of clients and may cause AUM, revenue and earnings to decline.

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1. The impairment or failure of third parties may negatively impact the performance of products and accounts that BlackRock manages, which may cause BlackRock’s AUM, revenue and earnings to decline.
2. The failure of key third-party providers to BlackRock to fulfill their obligations or a failure by BlackRock to maintain its relationships with key third-party providers could have a material adverse effect on BlackRock’s growth, reputation or business, which may cause the Company’s AUM, revenue and earnings to decline.
3. Any disruption to the Company’s distribution channels may cause BlackRock’s AUM, revenue and earnings to decline.
4. Key technology partnerships may expose BlackRock to increased regulatory oversight, as well as migration, execution, technology and operational risks.
5. Disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded product (“ETP”) platform may adversely affect the prices at which ETPs trade, particularly during periods of market volatility.reworded

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1. BlackRock is subject to extensive regulation around the world, which increases its cost of doing business.
2. New regulations informed by global standard setters and/or developed by various national authorities may expose BlackRock to increasing regulatory scrutiny and compliance costs in the jurisdictions in which it operates.
3. Macroprudential Policies for Asset Managers

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1. Regulatory reforms in the US expose BlackRock to increasing regulatory scrutiny, as well as regulatory uncertainty.

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1. Designation as a Systemically Important Financial Institution (“SIFI”)

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1. SEC US Treasury Clearing Mandate
2. SEC Rules on Reporting of Short Positions and Securities Loansreworded

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1. Financial Crimes Enforcement Network (“FinCEN”) Rule for Registered Investment Advisersreworded
2. SEC Rules on Form PFnew
3. Regulation of US Registered Funds and Investment Advisersnew
4. International regulatory reforms expose BlackRock to increasing regulatory scrutiny, as well as regulatory uncertainty.

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1. Enhanced Regulatory Scrutiny of Technology Service Providers to Financial Services Firms

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1. Legal proceedings may cause the Company’s AUM, revenue and earnings to decline.
2. BlackRock faces ongoing focus from regulators, officials, clients and other stakeholders regarding environmental and social-related matters, which may adversely impact its reputation and business.reworded
3. Damage to BlackRock’s reputation may harm its business.
4. A failure to effectively manage potential conflicts of interest could result in litigation or enforcement actions and/or adversely affect BlackRock’s business and reputation, which may cause BlackRock’s AUM, revenue and earnings to decline.
5. A subsidiary of BlackRock is subject to US banking regulations that may limit its business activities.
6. The implications of complying with threshold limits and/or any failure to comply with ownership reporting requirements may result in harm to BlackRock’s reputation, impact the performance of certain BlackRock funds and cause its AUM, revenue and earnings to decline.reworded
7. BlackRock has been the subject of commentary citing concerns about the scale of its business, as well as purported competition issues relating to the common ownership theory.reworded
8. New tax legislation or changes to existing US and non-US tax laws, treaties and regulations or challenges to BlackRock’s historical taxation practices may adversely affect BlackRock’s effective tax rate, business and overall financial condition.

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Headings in the FY2024 10-K with no match this year.

1. Changes in interest or foreign exchange rates and/or divergent beta may cause BlackRock’s AUM and base fees to fluctuate and introduce volatility to the Company’s net income and operating cash flows.
2. SEC Rules Governing Security-Based Swaps
3. Proposed Rules on Equity Market Structure
4. SEC Predictive Data Analytics Rules
5. SEC Rulemakings for US Registered Funds and Investment Advisers