Bank of America (BAC) risk factors, 2025 10-K

Other

1. 01We may be adversely affected by the financial markets, fiscal, monetary, and regulatory policies, and economic conditions
2. 02macroeconomic conditions, as well as result in additional market volatility and disruptions and recessionary risk
3. 03Increased market volatility and adverse changes in financial or capital market conditions may increase our market risk
4. 04If asset values decline, we may incur losses and negative impacts, including to capital and liquidity requirements
5. 05If we are unable to access the capital markets, have prolonged net deposits outflows, or our borrowing costs increase, our liquidity and competitive position will be negatively affected
6. 06Reduction in our credit ratings could limit our access to funding or the capital markets, increase borrowing costs or trigger additional collateral or funding requirements
7. 07Bank of America Corporation is a holding company, is dependent on its subsidiaries for liquidity and may be restricted from transferring funds from subsidiaries
8. 08pay dividends or make payments to us may adversely affect our cash flow, liquidity and financial condition
9. 09Bank of America Corporation’s liquidity and financial condition, and the ability to pay dividends and obligations, could be adversely affected in the event of a resolution
10. 10Economic or market disruptions and insufficient credit loss reserves may result in a higher provision for credit losses
11. 11Our concentrations of credit risk could adversely affect our credit losses, results of operations and financial condition
12. 12could lead to market-wide liquidity disruptions, losses, defaults and related disputes and litigation
13. 13We may be adversely affected by weaknesses in the U.S. housing market
14. 14Our derivatives businesses may expose us to unexpected risks, which may result in losses and adversely affect liquidity
15. 15We are subject to numerous political, economic, market, reputational, operational, compliance, legal, regulatory and other risks in the jurisdictions in which we operate
16. 16A failure in or breach of our operations or information systems, or those of third parties or the financial services industry, could cause disruptions, adversely impact our businesses, results of operations and financial condition, and cause legal or reputational harm
17. 17Our operations and information systems and components thereof, and those of our third parties, have been, and in the
18. 18machine learning and generative AI) and robotics, increases our cybersecurity risks and exposure, including by making fraud detection and authentication more difficult
19. 19Failure to satisfy our obligations as servicer for residential mortgage securitizations, loans owned by other entities and other related losses could adversely impact our reputation, servicing costs or results of operations
20. 20Changes in the structure of and relationship among the GSEs could adversely impact our business
21. 21Our risk management framework may not be effective in mitigating risk and reducing the potential for losses
22. 22We are subject to significant financial and reputational risks from potential liability arising from lawsuits and regulatory and government action
23. 23U.S. federal banking agencies may require increased capital and liquidity levels, which could adversely impact the Corporation
24. 24Changes in accounting standards or assumptions in applying accounting policies could adversely affect us
25. 25Damage to our reputation could harm our businesses, including our competitive position and business prospects
26. 26We face significant and increasing competition in the financial services industry
27. 27Our inability to adapt our business strategies, products and services could harm our business
28. 28widespread health emergencies or pandemics, cyberattacks, and military conflicts or other significant geopolitical events
29. 29We could suffer operational, reputational and financial harm if our models fail to properly anticipate and manage risk
30. 30Failure to properly manage data may adversely affect our ability to manage compliance risk and business needs, and result in errors in our operations, reporting and decision-making, and non-compliance with LRRs
31. 31Our operations, businesses and clients could be adversely affected by the impacts related to climate change
32. 32Our ability to attract, develop and retain qualified employees is critical to our success, business prospects and competitive position