Morgan Stanley (MS) risk factors, 2026 10-K

Market Risk

1. 01Our results of operations may be materially affected by market fluctuations and by global financial market and economic conditions and other factors
2. 02Significant changes to interest rates could adversely affect our results of operations
3. 03Holding large and concentrated positions may expose us to losses
4. 04We are exposed to the risk that third parties that are indebted to us will not perform their obligations
5. 05A default by a large financial institution or financial services firm could adversely affect financial markets

Operational Risk

1. 06We are subject to operational risks, including a failure, breach or other disruption of our operations or security systems or those of our third parties (or third parties thereof), as well as human error or malfeasance, which could adversely affect our businesses or reputation
2. 07Our businesses and operations may also be adversely impacted by inadequate data quality management processes, including failure to meet defined expectations related to the appropriate completeness, timeliness and accuracy of data in reports, models or other data deliverables
3. 08operations and/or increase costs. Any theft of data, technology or intellectual property may negatively impact our operations and reputation, including disrupting the business activities of our subsidiaries, affiliates, joint ventures or clients conducting business in those jurisdictions
4. 09Liquidity is essential to our businesses and we rely on external sources to finance a significant portion of our operations
5. 10authorities take significant action against us or our industry, or if we discover significant employee misconduct or illegal activity
6. 11Our borrowing costs and access to the debt capital markets depend on our credit ratings
7. 12Our ability to raise funding in the long-term or short-term debt capital markets or the equity markets, or to access secured lending markets, has in the past been, and could in the future be, adversely affected by conditions in the U.S. and international markets and economies
8. 13Our risk management strategies, models and processes may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk, which could result in unexpected losses
9. 14mitigating our risk exposure in all market environments or against all types of risk, including risks that are unidentified or unanticipated

Legal, Regulatory and Compliance Risk

1. 15The financial services industry is subject to extensive regulation, and changes in regulation will impact our business
2. 16The application of regulatory requirements and strategies in the U.S. or other jurisdictions to facilitate the orderly resolution of large financial institutions may pose a greater risk of loss for our security holders and subject us to other restrictions
3. 17We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements
4. 18The financial services industry faces substantial litigation and is subject to extensive regulatory and law enforcement investigations, and we may face damage to our reputation and legal liability
5. 19these measures have caused and may in the future cause collateral consequences. For example, such matters could impact our ability to engage in, or impose limitations on, certain of our businesses
6. 20A failure to address conflicts of interest appropriately could adversely affect our businesses and reputation
7. 21Firm initiatives, which may heighten the potential conflicts of interest or the risk of improper sharing of information
8. 22We face strong competition from financial services firms and others, which could lead to pricing pressures that could materially adversely affect our revenues and profitability
9. 23Automated trading markets and the introduction and application of new technologies may adversely affect our business and may increase competition
10. 24Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance

Other Risks

1. 25We are subject to numerous political, economic, legal, compliance, tax, operational, franchise and other risks as a result of our international operations that could adversely impact our businesses in many ways
2. 26We may be unable to fully capture the expected value from acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances, and certain acquisitions may subject our business to new or increased risk
3. 27Climate-related risks could result in increased costs and adversely affect our operations, businesses and clients
4. 28the way we respond is perceived negatively, our business and reputation may suffer