Stifel Financial (SF) risk factors, FY2025 10-K

MARKET AND LIQUIDITY RISKS

1. 01Lack of funding, liquidity, or access to capital could impair our business and financial condition
2. 02A downgrade in our credit ratings could have a material adverse effect on our operations, earnings, and financial condition
3. 03We are exposed to market risk, including interest rate risk
4. 04We are exposed to credit risk

ECONOMIC ENVIRONMENT RISKS

1. 05Our business is sensitive to domestic and international macroeconomic conditions caused by political and geopolitical developments, fiscal, monetary, and tax policies, regulations, and other domestic and international events37% rewritten

OPERATIONAL RISKS

1. 06Damage to our reputation could damage our businesses
2. 07Our ability to attract and retain senior professionals, qualified financial advisors, and other associates is critical to the continued success of our business
3. 08Our business depends on fees earned from the management of client accounts and asset management fees
4. 09Our underwriting, market-making, trading, and other business activities place our capital at risk
5. 10The soundness of other financial institutions and intermediaries affects us
6. 11We face intense competition and pricing pressures and may not be able to keep pace with technological change
7. 12We are exposed to operational risk
8. 13A continued interruption to our telecommunications or data processing systems, or the failure to effectively update the technology we utilize, could be materially adverse to our business
9. 14Cyber attack or other security breach of our technology systems, or those of other third parties we rely on, could subject us to significant liability and reputational harm69% rewritten
10. 15The development and use of artificial intelligence presents risks and challenges that could adversely impact our business, financial condition, and results of operations
11. 16The preparation of the consolidated financial statements requires the use of estimates that may vary from actual results, and new accounting standards could adversely affect future reported results
12. 17Our risk management and conflicts of interest policies and procedures may leave us exposed to unidentified or unanticipated risk
13. 18Associate misconduct, which is difficult to detect and deter, could harm us by impairing our ability to attract and retain clients and subject us to significant legal liability and reputational harm75% rewritten
14. 19Business growth, including through acquisitions, could increase costs and regulatory and integration risks
15. 20We are subject to risks relating to environmental, social, and governance matters that could adversely affect our reputation, business, financial condition, and results of operations63% rewritten

LEGAL AND REGULATORY RISKS

1. 21Financial services firms are highly regulated and are subject to new and proposed regulations, all of which may increase our risk of financial liability and reputational harm resulting from adverse regulatory actions
2. 22We are exposed to litigation and regulatory investigations and proceedings, which could materially and adversely impact our business operations and prospects
3. 23The Basel III regulatory capital standards impose capital and other requirements on us that could negatively impact our profitability
4. 24Failure to comply with regulatory capital requirements primarily applicable to our company, our bank subsidiaries, or our broker-dealer subsidiaries would significantly harm our business
5. 25Changes in requirements relating to the standard of care for broker-dealers have increased, and may continue to increase, our costs23% rewritten
6. 26Numerous regulatory changes and enhanced regulatory and enforcement activity relating to our asset management activities may increase our compliance and legal costs and otherwise adversely affect our business
7. 27As a financial holding company, our company’s liquidity depends on payments from its subsidiaries, which may be subject to regulatory restrictions