Prudential Financial (PRU) risk factors: FY2025 10-K

1. Our investment portfolios are subject to the risk of loss due to default or deterioration in credit quality or value.

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1. Certain of our insurance products are subject to policyholder behavior risk, which is the risk that actual policyholder behavior deviates adversely from our expectations. Policyholder behavior risk can manifest in the following ways:reworded
2. Our ability to reprice products is limited and may not compensate for deviations from our expected insurance assumptions.
3. The profitability of many of our insurance and annuity products, as well as the fees we earn in our investment management business, are subject to market risk. Market risk is the risk of loss from changes in interest rates, equity prices and foreign currency exchange rates.Interest rates
4. Guarantees within certain of our products, in particular our variable annuities and to a lesser extent certain individual life and international insurance products, are market sensitive and may decrease our earnings or increase the volatility of our results of operations or financial position.
5. We are subject to counterparty risk associated with reinsurance transactions.

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1. As a financial services company, we are exposed to liquidity risk, which is the risk that the Company is unable to meet near-term obligations as they come due.

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1. We are subject to business continuation risk, which is the risk that our operations, systems or data, or those of third-parties on whom we rely, may be disrupted.
2. We, or third parties on whom we rely, may not adequately ensure the integrity, confidentiality, or availability of personal and confidential information.new
3. We have incurred and could incur significant costs and other negative consequences resulting from cyber-attacks or other information security breaches.rewordedCybersecurity
4. Third parties (outsourcing providers, vendors and suppliers and joint venture partners) present added operational risk to our enterprise.
5. The manner in which our products are distributed, including by affiliate and third-party distributors of our products, presents added regulatory, competitive and other risks to our enterprise.reworded
6. As a financial services company, we are exposed to model risk, which is the risk of financial loss or reputational damage or adverse regulatory impacts caused by model errors or limitations, incorrect implementation of models, or misuse of or overreliance upon models.

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1. We are subject to the risk of events that can cause our fundamental business model to change, either through a shift in the businesses in which we are engaged or a change in our execution.
2. The following items are examples of other factors which could have an adverse impact on our business.reworded
3. •Market conditions and other factors may adversely impact product sales or increase expenses. Examples include:

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

1. Our operations are exposed to the risk of loss resulting from inadequate or failed processes or systems, human error or misconduct, and as a result of external events.