JPMorgan Chase & Co. (JPM) risk factors: FY2025 10-K

1. JPMorganChase’s businesses are highly regulated and are significantly affected by applicable law and supervisory expectations.new
2. Differences in the supervision and regulation of financial services firms could require JPMorganChase to modify its operations and incur higher operational and compliance costs.new
3. JPMorganChase faces significant legal risks from civil and governmental proceedings, including litigation, investigations and enforcement actions.new
4. Resolving an investigation by a governmental authority could subject JPMorganChase to significant penalties and other repercussions.new
5. JPMorganChase’s compliance risk and operating costs could be higher in jurisdictions with less predictable legal, regulatory and judicial frameworks.new
6. JPMorganChase's business and operations could be negatively affected by governmental policies that discourage or penalize doing business with certain industries or that require specific business practices.reworded
7. Changes in the requirements for the regulatory evaluation of JPMorganChase’s resolution plan could increase its funding or operational costs or require restructuring or curtailment of its businesses.new
8. Holders of JPMorgan Chase & Co.’s debt and equity securities will absorb losses if it were to enter into a resolution.
9. JPMorganChase’s businesses could be negatively affected by economic uncertainty resulting from political and geopolitical developments.new
10. Adverse economic and market events and conditions could negatively affect JPMorganChase’s results of operations and investment and market-making positions.new
11. JPMorganChase’s consumer businesses could be negatively affected by adverse economic conditions and adverse impacts of governmental policies.reworded
12. Unfavorable market and economic conditions could adversely affect JPMorganChase’s wholesale businesses.new
13. Changes in interest rates and credit spreads could adversely affect JPMorganChase’s earnings or its liquidity and capital levels.rewordedInterest rates
14. JPMorganChase’s results could be materially affected by market fluctuations and significant changes in the valuation of financial instruments.reworded
15. JPMorganChase could be negatively affected by adverse changes in the financial condition of clients, counterparties, CCPs and other market participants.reworded
16. JPMorganChase could suffer losses if the value of collateral declines.new
17. JPMorganChase could incur significant losses arising from concentrations of credit and market risk.
18. JPMorganChase’s ability to operate its businesses could be impaired if its liquidity is constrained.
19. JPMorgan Chase & Co. is a holding company and depends on its subsidiaries for funding to make payments on its outstanding securities.reworded
20. JPMorganChase’s liquidity and cost of funding could be adversely affected by downgrades in its credit ratings.reworded
21. JPMorganChase’s ability to distribute capital to shareholders, and to support its business activities could be limited if it does not satisfy applicable regulatory capital requirements.new
22. JPMorganChase’s businesses could be adversely affected by the failure or disruption of operational systems on which they depend.new
23. JPMorganChase’s interconnectedness with clients, customers and other external parties could be a source of significant operational risk.new
24. A successful cyber attack could cause significant harm to JPMorganChase and its clients and customers.rewordedCybersecurity
25. JPMorganChase’s businesses could be adversely affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services, delivery platforms or technologies.reworded
26. JPMorganChase’s business and operations rely on appropriate staffing and on the competence, trustworthiness, health and safety of employees.new
27. JPMorganChase faces substantial legal and operational risks related to the processing and safeguarding of personal information.reworded
28. JPMorganChase’s operations, results and reputation could be harmed by occurrences of extraordinary events beyond its control.
29. Any failure to maintain adequate data management processes could adversely affect JPMorganChase’s ability to effectively manage its businesses, comply with applicable law or make informed business decisions.new
30. Enhanced regulatory and other standards for the oversight of JPMorganChase’s vendors and other service providers could result in higher costs and other potential exposures.reworded
31. JPMorganChase could incur losses arising from any significant inadequacy or lapse in its risk management framework and control environment.new
32. JPMorganChase could recognize unexpected losses, its capital levels could be reduced and it could face greater regulatory scrutiny if its models, estimations or judgments, including those used in its financial statements, are inadequate or incorrect.
33. A significant inadequacy in disclosure or financial reporting controls could negatively affect JPMorganChase’s business, operations and reputation.new
34. JPMorganChase’s results or competitive standing could suffer if its management fails to develop and execute effective business strategies and to anticipate changes affecting those strategies.
35. Competition in the financial services industry could lead to negative effects on JPMorganChase’s results of operations.new
36. JPMorganChase’s operations, results, and competitive standing could be adversely affected by the development of advanced technologies such as AI.newAI
37. The effects of climate change could adversely affect JPMorganChase’s business and operations, both directly and as a result of impacts on its clients and customers.
38. Conduct failure by JPMorganChase employees could trigger litigation and regulatory actions and harm JPMorganChase’s reputation.new
39. Damage to JPMorganChase’s reputation could negatively affect its business, results and prospects.new
40. Failure to effectively manage potential conflicts of interest or to satisfy fiduciary obligations could result in litigation and enforcement actions and cause reputational harm.reworded
41. An outbreak or escalation of hostilities between countries or within a country or region could have a material adverse effect on the global economy and on JPMorganChase’s businesses within the affected region or globally.
42. JPMorganChase’s business and operations in certain countries could be adversely affected by local economic, political, regulatory and social factors.reworded
43. Various factors could impact JPMorganChase’s workforce.new

Read these in Item 1A · See the changes

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

1. JPMorganChase’s businesses are highly regulated, and the laws, rules and regulations that apply to JPMorganChase have a significant impact on its business and operations.
2. Differences and inconsistencies in financial services regulation and supervision can negatively impact JPMorganChase’s businesses, operations and financial results.
3. Resolving regulatory investigations can subject JPMorganChase to significant penalties and collateral consequences, and could result in higher compliance costs or restrictions on its operations.
4. Requirements for the orderly resolution of JPMorganChase could result in JPMorganChase having to restructure or reorganize its businesses and could increase its funding or operational costs or curtail its businesses.
5. Economic uncertainty or instability caused by political and geopolitical developments can negatively impact JPMorganChase’s businesses.
6. Economic and market events and conditions can materially affect JPMorganChase’s businesses and investment and market-making positions.
7. Unfavorable market and economic conditions can have an adverse effect on JPMorganChase’s wholesale businesses.
8. JPMorganChase may suffer losses if the value of collateral declines in stressed market conditions.
9. Maintaining the required level and composition of capital may impact JPMorganChase’s ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
10. JPMorganChase’s businesses are dependent on the effectiveness of internal and external operational systems.
11. JPMorganChase’s business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
12. Data quality is essential to JPMorganChase’s business and operations, and if JPMorganChase fails to maintain adequate data management processes, this could adversely affect its ability to effectively manage its businesses, comply with applicable laws, rules and regulations, or remain competitive.
13. JPMorganChase’s risk management framework and control environment will not be effective in identifying and mitigating every risk to JPMorganChase.
14. Lapses, weaknesses or deficiencies in controls over disclosure or financial reporting could materially affect JPMorganChase’s profitability or reputation.
15. JPMorganChase faces significant and increasing competition in the rapidly evolving financial services industry.
16. Conduct failure by JPMorganChase employees can harm clients and customers, impact market integrity, damage JPMorganChase’s reputation and trigger litigation and regulatory action.
17. Damage to JPMorganChase’s reputation could harm its businesses.
18. JPMorganChase’s ability to attract and retain qualified employees is critical to its success.
19. Unfavorable changes in immigration or travel policies could adversely affect JPMorganChase’s businesses and operations.
20. JPMorganChase faces significant legal risks from litigation and formal and informal regulatory and government investigations.