Oppenheimer Holdings (OPY) risk factors, FY2025 10-K

Market Risk

1. 01Our results of operations may be materially affected by market fluctuations and by global and economic conditions and other factors, including changes in asset values
2. 02The Company is exposed to the risk that third parties that owe it money, securities or other assets will not perform their obligations27% rewritten
3. 03Liquidity is essential to our businesses and we rely on external sources to finance a significant portion of our operations
4. 04Our short-term lines of credit are uncommitted in nature and subject to the risk that our lenders decline to fund a requested loan

Operational Risk

1. 05We 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. 06The Company's information systems may experience an interruption or breach in security
3. 07Security breaches of our technology systems, or those of our clients or other third-party vendors we rely on, may expose us to significant liability and harm our reputation90% rewritten
4. 08services firms are on the rise, we have not experienced any material losses relating to cyber-attacks or other information security breaches, although such attacks are occurring more frequently and with increased sophistication. However, there can be no assurance that we will not suffer such losses in the futureNew
5. 09The Company continually encounters technological change46% rewritten
6. 10negatively affect any solutions we develop or deploy and could subject us to reputational harm, regulatory action or litigation, any of which may harm our financial condition and operating resultsNew
7. 11The Company does not currently offer the direct purchase or sale of digital or related custody services, which may limit our ability to compete or adapt to market trendsNew
8. 12There is risk associated with the sufficiency of coverage under the Company’s insurance policies
9. 13Climate change and emerging state-level sustainability reporting requirements could adversely affect our operations, financial condition and reputationNew
10. 14We are subject to risks relating to environmental, social, and governance (“ESG”) matters that could adversely affect our reputation, business, financial condition, and results of operations, as well as the price of our common stock

REGULATORY AND COMPLIANCE RISKS

1. 15The Company is subject to extensive securities regulation and the failure to comply with these regulations could subject it to monetary penalties or sanctions
2. 16Financial services firms have been subject to increased regulatory scrutiny increasing the risk of financial liability and reputational harm resulting from adverse regulatory actions
3. 17Numerous regulatory changes, and enhanced regulatory and enforcement activity, relating to the asset management business may increase our compliance and legal costs and otherwise adversely affect our business
4. 18If the Company violates the securities laws, or is involved in litigation in connection with a violation, the Company's reputation and results of operations may be adversely affected
5. 19The Company is exposed to litigation and arbitration risks, which may adversely affect our reputation, financial position and results of operations
6. 20The Company's risk management policies and procedures may leave it exposed to unidentified risks or an unanticipated level of risk
7. 21The holders of Class A Stock do not have the ability to vote on most corporate matters which limits the influence that these holders have over the Company
8. 22The trading volume in the Company's Class A Stock is less than that of larger financial services companies
9. 23The Company is the holding company of several operating subsidiaries, and is reliant on dividends and other sources of funding from those subsidiaries to pay dividends to holders of Class A Stock and meet other obligations
10. 24Our ability to pay future dividends to holders of Class A Stock is subject to the Board of Directors’ discretion and may be impacted by our financial and operating results29% rewritten

GENERAL BUSINESS AND ECONOMIC RISKS

1. 25Developments in market and economic conditions have in the past adversely affected, and may in the future adversely affect, the Company's business and profitability77% rewritten
2. 26to increased credit market dislocations, reductions in the value of real estate, and other negative market factors which could significantly impair our revenues and profitabilityNew
3. 27The Company has experienced significant pricing pressure in areas of its business, which may impair its revenues and profitability
4. 28The Company may make strategic acquisitions of businesses, engage in joint ventures or divest or exit existing businesses, which could result in unforeseen expenses or disruptive effects on its business
5. 29The business operations that are conducted outside of the United States subject the Company to unique risks and potential loss
6. 30The ability to attract, develop and retain highly skilled and productive employees, particularly qualified financial advisors is critical to the success of the Company's business
7. 31The Company depends on its senior employees and the loss of their services could harm its business21% rewritten
8. 32The precautions the Company takes to prevent and detect employee misconduct may not be effective and the Company could be exposed to unknown and unmanaged risks or losses74% rewritten
9. 33inappropriate content on social or other internet media; or employees engaging in “hacking” or breaching our cybersecurity safeguardsNew