American Express (AXP) risk factors, 2025 10-K

Strategic & Business, Reputational and Country Risks

1. 01Business and economic conditions are a major driver of our results of operations and difficult conditions in the business and economic environment may materially adversely affect our business
2. 02Our business is subject to the effects of geopolitical conditions, weather, natural disasters and other catastrophic events
3. 03Our operating results may materially suffer because of substantial and increasingly intense competition worldwide in the payments industry
4. 04We may face additional compliance and regulatory risks to the extent that we expand into new business areas, and we may need to dedicate more expense, time and resources to comply with regulatory requirements than our competitors, particularly those that are not regulated financial institutions
5. 05We face intense competition for partner relationships, which could result in a loss or renegotiation of these arrangements that could have a material adverse impact on our business and results of operations
6. 06financial condition and results of operations. See Note 12 to the “Consolidated Financial Statements” for additional information on financial commitments related to agreements with certain cobrand partners
7. 07We face continued intense competitive pressure that may materially impact the prices we charge for accepting our cards for payment, as well as the risk of losing merchant relationships, which could have a material adverse impact on our business and results of operations
8. 08Surcharging, steering or other differential acceptance practices by merchants could materially adversely affect our business and results of operations
9. 09We may not be successful in our efforts to promote card usage or attract new Card Members, including through marketing and promotion, merchant acceptance and Card Member rewards and services, or to effectively control the costs of such investments, all of which may materially impact our profitability
10. 10Our brand and reputation are key assets of our Company, and our business may be materially affected by how we are perceived in the marketplace
11. 11If we are not able to successfully invest in, and compete with respect to, technological developments and new products and services across all our businesses, our revenue and profitability could be materially adversely affected
12. 12We may not be successful in realizing the benefits associated with our acquisitions, strategic alliances, joint ventures and investment activity, and our business and reputation could be materially adversely affected

Operational and Compliance/Legal Risks

1. 13We may not be able to effectively manage the operational and compliance risks to which we are exposed
2. 14A major information or cybersecurity incident or an increase in fraudulent activity could lead to reputational damage to our brand and material legal, regulatory and financial exposure, and could reduce the use and acceptance of our products and services
3. 15The uninterrupted operation of our information systems is critical to our success and a significant disruption could have a material adverse effect on our business and results of operations
4. 16Our business is subject to evolving and comprehensive government regulation and supervision, which could materially adversely affect our results of operations and financial condition
5. 17Litigation and regulatory actions could subject us to significant fines, penalties, judgments and/or requirements resulting in significantly increased expenses, damage to our reputation and/or a material adverse effect on our business and results of operations
6. 18We rely on third-party providers for acquiring and servicing customers, technology, platforms and other services integral to the operations of our businesses. These third parties may act in ways that could materially harm our business
7. 19Our success is dependent on maintaining a culture of integrity and respect and upon our executive officers and other key personnel, and misconduct by or loss of personnel could materially adversely affect our business
8. 20If we are not able to protect our intellectual property, or successfully defend against any infringement or misappropriation assertions brought against us, our revenue and profitability could be negatively affected
9. 21Tax legislative initiatives or assessments could adversely affect our results of operations and financial condition
10. 22Our operations, business, customers and partners could be adversely affected by climate-related risks
11. 23Our use of models to manage risk and make business decisions may not be effective
12. 24We are exposed to credit risk and trends that affect Card Member spending and the ability of customers and partners to pay us, which could have a material adverse effect on our results of operations and financial condition
13. 25Interest rate changes could materially adversely affect our earnings
14. 26We are subject to capital adequacy and liquidity rules, and if we fail to meet these rules, our business would be materially adversely affected
15. 27We are subject to restrictions that limit our ability to pay dividends and repurchase our capital stock. Our subsidiaries are also subject to restrictions that limit their ability to pay dividends to us, which may adversely affect our liquidity
16. 28Our ability to declare or pay dividends on, or to purchase, redeem or otherwise acquire, shares of our common stock will be prohibited, subject to certain exceptions, in the event that we do not declare and pay in full dividends for the last preceding dividend period of our preferred stock
17. 29Adverse market conditions may significantly affect our access to, and cost of, capital and ability to meet liquidity needs
18. 30Any reduction in our credit ratings could increase the cost of our funding from, and restrict our access to, the capital markets and have a material adverse effect on our results of operations and financial condition
19. 31Adverse currency fluctuations and foreign exchange controls could decrease earnings we receive from our international operations
20. 32An inability to accept or maintain deposits due to market demand or regulatory constraints could materially adversely affect our liquidity position and our ability to fund our business
21. 33which could materially adversely affect us and our ability to fund our business. The use of social media and similar channels has the potential to intensify and accelerate such a decrease in confidence in soundness
22. 34The value of our investments may be adversely impacted by economic, political or market conditions