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Risks
1. Market Risk: Morgan Stanley is exposed to market risk due to the changing valuations of its investments, securities and other financial instruments.
2. Credit Risk: Morgan Stanley is exposed to the risk of debtors defaulting on payments.
3. Legal Risk: Morgan Stanley faces risks from legal disputes which can result in significant losses.
4. Reputation Risk: Mismanagement of investments can result in reputation damage, leading to customer loss and reduced creditworthiness.
5. Liquidity Risk: Morgan Stanley's ability to generate cash when needed would be affected negatively by a lack of liquidity in the market.
6. Regulatory Risk: Morgan Stanley is subject to complex regulations and could be subject to costly fines if it fails to comply.
7. Operational Risk: Morgan Stanley is subject to operational risks, such as systems failure, errors in processing or internal fraud.