T. Rowe Price (TROW) risk factors: FY2025 10-K

1. RISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY.
2. Our revenues are based on the market value and composition of the assets under our management, all of which are subject to fluctuation caused by factors outside of our control.
3. A majority of our revenues are based on contracts with commingled vehicles that are subject to termination without cause and on short notice.reworded
4. We operate in an intensely competitive industry. Competitive pressures may result in a loss of clients and their assets or compel us to reduce the fees we charge to clients, thereby reducing our revenues and net income.
5. The failure or negative performance of products offered by competitors may cause our products, which are similar, to be impacted irrespective of our performance.
6. Our operations are complex and a failure to properly execute operational processes could have an adverse effect on our reputation and decrease our revenues.
7. The quantitative models we use may contain errors, which could result in financial losses or adversely impact product performance and client relationships.
8. Any damage to our reputation could harm our business and lead to a loss of revenues and net income or access to capital.
9. Failure to comply with client contractual requirements and/or investment guidelines could result in costs of correction, damage awards or regulatory fines and penalties against us and loss of revenues due to client terminations.
10. Our alternatives products include investments in private credit, real estate, infrastructure and private companies, which may expose us to new or increased risks and liabilities and to reputational harm.reworded
11. Our expenses are subject to significant fluctuations that could materially decrease net income.
12. Our hedging strategies utilized to mitigate risk may not be effective, which could impact our net income.reworded
13. Changes in tax laws or exposure to additional tax liabilities may impact our financial position or the marketability of the products and services we offer our clients.
14. Examinations and audits by tax authorities could result in additional tax payments for prior periods, which could impact our financial results.
15. We have contracted with third-party financial intermediaries that distribute our investment products and such relationships may not be available or profitable to us in the future.
16. Natural disasters and other unpredictable events could adversely affect our operations and financial results.
17. Our business, financial condition, and results of operation may be adversely affected by pandemics, epidemics or disease outbreaks.
18. The soundness of other financial services institutions could adversely affect us or the client portfolios we manage.
19. We may review and pursue strategic transactions in order to maintain or enhance our competitive position and these could pose risks.
20. Climate change-related risks could adversely affect our business, products, operations and clients, which may cause our AUM, revenues and earnings to decline.
21. We are exposed to risks arising from our international operations.
22. Our investment income and asset levels may be negatively impacted by fluctuations in our investment portfolio.
23. HUMAN CAPITAL RISKS.
24. Our success depends on our key personnel and our investment performance and financial results could be negatively affected by the loss of their services.
25. TECHNOLOGY RISKS.
26. We require significant quantities and types of technology to operate our business and would be adversely affected if we or our third party providers fail to maintain adequate, resilient and secure technology to conduct or expand our operations or if our technology became inoperative or obsolete.reworded
27. A cyberattack or a failure to implement effective information and cybersecurity policies, procedures and capabilities could disrupt operations and cause financial losses.Cybersecurity
28. We could be subject to losses if we fail to properly safeguard and maintain confidential data or our intellectual property.
29. The recent advancements in and increased use of artificial intelligence (AI) present risks and challenges that may adversely impact our business.AI
30. LEGAL AND REGULATORY RISKS.
31. Compliance within a complex regulatory and legal environment which continues to evolve imposes significant financial and strategic costs on our business, and non-compliance could result in fines and penalties.
32. Legal and regulatory developments in the mutual fund, retirement and investment advisory industry could increase our regulatory burden, impose significant financial and strategic costs on our business, and cause a loss of, or impact the servicing of, our clients and product shareholders.reworded
33. We may become involved in legal and regulatory proceedings that may not be covered by insurance.
34. Net capital requirements may impede the business operations of our subsidiaries.
35. We may be impacted adversely by claims or litigation, including claims or litigation relating to our fiduciary responsibilities.
36. We may be adversely affected by increased governmental and regulatory scrutiny or negative publicity.

Read these in Item 1A · See the changes

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

1. Our financial condition and liquidity would be adversely affected by losses on our seed capital and co-investments.