BlackRock (BLK) risk factors, 2025 10-K

RISKS RELATED TO MARKET AND COMPETITION

1. 01Changes in the value levels of equity, debt, real assets, commodities, foreign exchange or other asset markets, including from the impact of global trade policies and tariffs, may cause assets under management (“AUM”), revenue and earnings to decline
2. 02a decrease in the value of seed or co-investment capital
3. 03Changes in interest or foreign exchange rates and/or divergent beta may cause BlackRock’s AUM and base fees to fluctuate and introduce volatility to the Company’s net income and operating cash flows
4. 04BlackRock’s investment advisory contracts may be terminated or may not be renewed by clients and fund boards on favorable terms and the liquidation of certain funds may be accelerated at the option of investors
5. 05The failure or negative performance of products offered by competitors may cause AUM in similar BlackRock products to decline irrespective of BlackRock’s performance
6. 06Increased competition may cause BlackRock’s AUM, revenue and earnings to decline
7. 07Failure to maintain Aladdin’s competitive position in a dynamic market could lead to a loss of clients and could impede BlackRock’s productivity and growth
8. 08BlackRock may be unable to develop new products and services and the development of new products and services may expose BlackRock to reputational harm, additional costs or operational risk
9. 09Changes in the value of seed and co-investments that BlackRock owns could affect its income and could increase the volatility of its earnings
10. 10BlackRock indemnifies certain securities lending clients for specified losses as a result of a borrower default
11. 11BlackRock’s decision on whether to provide support to particular investment products from time to time, or the inability to provide support, may cause AUM, revenue and earnings to decline
12. 12Geopolitical unrest and other events outside of BlackRock’s control could adversely affect the global economy or specific international, regional and domestic markets, which may cause BlackRock’s AUM, revenue and earnings to decline
13. 13Climate-related risks could adversely affect BlackRock’s business, products, operations and clients, which may cause BlackRock’s AUM, revenue and earnings to decline

RISKS RELATED TO INVESTMENT PERFORMANCE

1. 14Poor investment performance could lead to the loss of clients and may cause AUM, revenue and earnings to decline
2. 15Performance fees may increase volatility of both revenue and earnings
3. 16Failure to identify errors in the quantitative models BlackRock utilizes to manage its business could adversely affect product performance and client relationships

TECHNOLOGY AND OPERATIONAL RISKS

1. 17A failure in, or disruption to, BlackRock’s operations, systems or infrastructure, including business continuity plans, could adversely affect operations, damage the Company’s reputation and cause BlackRock’s AUM, revenue and earnings to decline
2. 18A cyber-attack or a failure to implement effective information and cybersecurity policies, procedures and capabilities could disrupt operations and lead to financial losses and reputational harm, which may cause BlackRock’s AUM, revenue and earnings to decline
3. 19Failure or unavailability of third-party dependencies may adversely affect Aladdin operations, which could cause reputational harm, lead to a loss of clients and impede BlackRock’s productivity and growth
4. 20A failure to effectively manage the development and use of AI, combined with an evolving regulatory environment, could have an adverse effect on BlackRock’s growth, reputation or business
5. 21Failure to maintain adequate corporate and contingent liquidity may cause BlackRock’s AUM, liquidity and earnings to decline, as well as harm its prospects for growth
6. 22Operating risks associated with BlackRock’s securities lending program may result in client losses
7. 23Inorganic transactions may harm the Company’s competitive or financial position if they are not successful
8. 24BlackRock is subject to risks associated with its recent and proposed acquisitions, including completion of proposed acquisitions in the anticipated timeframes or at all, and any failure to realize anticipated benefits of such acquisitions
9. 25BlackRock's alternatives products include investments in early-stage companies, private equity portfolio companies and real assets, such as real estate, infrastructure and energy assets, which expose BlackRock and its funds and accounts to new or increased risks and liabilities, as well as reputational harm

risks related to governance and oversight, including board oversight, of portfolio companies;

1. 26contingent liabilities on disposition of investments
2. 27Operating in international markets increases BlackRock’s operational, political, regulatory and other risks

RISKS RELATED TO HUMAN CAPITAL

1. 28The potential for human error in connection with BlackRock’s operational systems could disrupt operations, cause losses, lead to regulatory fines or damage the Company’s reputation and may cause BlackRock’s AUM, revenue and earnings to decline
2. 29Fraud, the circumvention of controls or the violation of risk management and workplace policies could have an adverse effect on BlackRock’s reputation, which may cause the Company’s AUM, revenue and earnings to decline
3. 30The failure to recruit, train and retain employees and develop and implement effective executive succession could lead to the loss of clients and may cause AUM, revenue and earnings to decline

RISKS RELATED TO KEY THIRD-PARTY RELATIONSHIPS

1. 31The impairment or failure of third parties may negatively impact the performance of products and accounts that BlackRock manages, which may cause BlackRock’s AUM, revenue and earnings to decline
2. 32Any disruption to the Company’s distribution channels may cause BlackRock’s AUM, revenue and earnings to decline
3. 33Key technology partnerships may expose BlackRock to increased regulatory oversight, as well as migration, execution, technology and operational risks
4. 34Disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded fund (“ETF”) platform may adversely affect the prices at which ETFs trade, particularly during periods of market volatility

LEGAL, REGULATORY AND REPUTATIONAL RISKS

1. 35BlackRock is subject to extensive regulation around the world, which increases its cost of doing business
2. 36BlackRock’s business is subject to extensive regulation around the world. These regulations subject BlackRock’s business activities to an array of increasingly detailed operational requirements, compliance with which is costly and complex
3. 37New regulations informed by global standard setters and/or developed by various national authorities may expose BlackRock to increasing regulatory scrutiny and compliance costs in the jurisdictions in which it operates
4. 38As jurisdictions continue to develop and implement sustainability regulations and litigation challenging such regulations increases, BlackRock faces greater fragmentation risk related to local application of regulations, resulting in complex and conflicting compliance obligations and legal and regulatory uncertainty
5. 39Regulatory reforms in the US expose BlackRock to increasing regulatory scrutiny, as well as regulatory uncertainty
6. 40International regulatory reforms expose BlackRock to increasing regulatory scrutiny, as well as regulatory uncertainty
7. 41Legal proceedings may cause the Company’s AUM, revenue and earnings to decline
8. 42BlackRock faces increasing focus from regulators, officials, clients and other stakeholders regarding environmental and social-related matters, which may adversely impact its reputation and business
9. 43Damage to BlackRock’s reputation may harm its business
10. 44A failure to effectively manage potential conflicts of interest could result in litigation or enforcement actions and/or adversely affect BlackRock’s business and reputation, which may cause BlackRock’s AUM, revenue and earnings to decline
11. 45A subsidiary of BlackRock is subject to US banking regulations that may limit its business activities
12. 46The implications of complying with threshold limits and/or any failure to comply with ownership reporting requirements could result in harm to BlackRock’s reputation, impact the performance of certain BlackRock funds and may cause its AUM, revenue and earnings to decline
13. 47BlackRock has been the subject of commentary citing concerns about the scale of its index investing business, as well as purported competition issues relating to the common ownership theory
14. 48New tax legislation or changes to existing US and non-US tax laws, treaties and regulations or challenges to BlackRock’s historical taxation practices may adversely affect BlackRock’s effective tax rate, business and overall financial condition