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Marsh McLennan Companies
Marsh McLennan Companies

Insurance and reinsurance / Insurance brokers


Risks
1. Market Risk: Like any other company, MMC is subject to market risk, in that when markets decline, MMC's stock price might suffer.

2. Regulatory Risk: MMC operates across many continents and is subject to the risk of changing or conflicting regulations.

3. Reputational Risk: Reputational risk relates to changes in opinion, public sentiment, and media scrutiny of MMC. Any damage to MMC's reputation can have an adverse effect on its bottom line.

4. Operational Risk: MMC is subject to operational risk, specifically dealing with IT and cyber security. In an age of cybercrime and cyber-attacks, MMC is vulnerable to criminal activity.

5. Legal Risk: MMC is subject to legal risk, such as being exposed to large fines and litigation.

6. Interest Rate Risk: As MMC invests in securities with various maturities, it is exposed to changes in the interest rates, which can impact the value of the instruments and the overall performance of MMC.

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