Piper Sandler Companies (PIPR) risk factors, FY2024 10-K

STRATEGIC AND MARKET RISK

1. 01Piper Sandler Companies | 8
2. 02Developments in market and economic conditions have in the past adversely affected, and may in the future adversely affect, our business and profitability and cause volatility in our results of operations
3. 03Developments in specific business sectors and markets in which we conduct our business have in the past adversely affected, and may in the future adversely affect, our business and profitability
4. 04Financing and advisory services engagements are transactional in nature and do not generally provide for subsequent engagements
5. 05We may make strategic acquisitions, enter into new business opportunities, or engage in joint ventures that could cause us to incur unforeseen expenses, have disruptive effects on our business and may not yield the benefits we expect
6. 06We may not be able to compete successfully with other companies in the financial services industry that have significantly greater resources than we do
7. 07Our institutional brokerage business is subject to pricing and competitive pressures
8. 08Our inability to identify and address actual, potential, or perceived conflicts of interest may negatively impact our reputation and have a material adverse effect on our business
9. 09Damage to our reputation could harm our business
10. 10The number of anticipated investment banking transactions may differ from actual results

HUMAN CAPITAL RISK

1. 11Piper Sandler Companies | 12
2. 12Our ability to attract, develop and retain highly skilled and productive employees, develop the next generation of our business leadership, and instill and maintain a culture of ethics is critical to the success of our business
3. 13Our inability to effectively integrate and retain personnel in connection with our acquisitions may adversely affect our financial condition and results of operations
4. 14LIQUIDITY AND CREDIT RISK
5. 15An inability to access capital readily or on terms favorable to us could impair our ability to fund operations and could jeopardize our financial condition and results of operations
6. 16The use of estimates and valuations in measuring fair value involve significant estimation and judgment by management
7. 17Piper Sandler Companies | 14
8. 18Concentration of risk increases the potential for significant losses
9. 19Our businesses, profitability and liquidity may be adversely affected by deterioration in the credit quality of, or defaults by, third parties who owe us money, securities or other assets
10. 20An inability to readily divest trading positions may result in financial losses to our business
11. 21Our underwriting and alternative asset management activities expose us to risk of loss
12. 22Use of derivative instruments as part of our financial risk management techniques may not effectively hedge the risks associated with activities in certain of our businesses

OPERATIONAL RISK

1. 23Our information and technology systems, including outsourced systems, are critical components of our operations, and failure of those systems or other aspects of our operations infrastructure may disrupt our business, cause financial loss and constrain our growth
2. 24Piper Sandler Companies | 16
3. 25Protection of our sensitive and confidential information is critical to our operations, and failure of those systems may disrupt our business, damage our reputation, and cause financial losses
4. 26Piper Sandler Companies | 17
5. 27Risk management processes may not fully mitigate exposure to the various risks that we face
6. 28The financial services industry and the markets in which we operate are subject to systemic risk that could adversely affect our business and results
7. 29Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could materially affect our business

LEGAL AND REGULATORY RISK

1. 30Piper Sandler Companies | 19
2. 31Our business is subject to extensive regulation in the jurisdictions in which we operate, and a significant regulatory action against our company may have a material adverse financial effect on, cause significant reputational harm to, or result in other collateral consequences for our company
3. 32Our industry is exposed to significant legal liability, which could lead to substantial damages
4. 33Legislative and regulatory proposals could significantly curtail the revenue from certain products or services that we currently provide or could otherwise have a material adverse effect on our results of operations
5. 34The business operations that we conduct outside of the U.S. subject us to unique risks
6. 35Regulatory capital requirements may limit our ability to expand or maintain our present levels of business or impair our ability to meet our financial obligations
7. 36We may change our dividend policy at any time and there can be no assurance that we will continue to declare cash dividends
8. 37Our stock price may fluctuate as a result of several factors, including changes in our revenues, operating results, and return on equity
9. 38Provisions in our amended and restated certificate of incorporation and amended and restated bylaws and of Delaware law may prevent or delay an acquisition of our company, which could decrease the market value of our common stock