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Risks
1. Cybersecurity Risk: Bank of Hawaii is vulnerable to cyberattacks that can lead to data and financial losses. This is especially true as the bank has moved many of its services and customer interaction online, making it an attractive target for cybercriminals.
2. Regulatory Risk: Bank of Hawaii is subject to many federal and state regulations that are designed to protect customers. If the bank fails to comply with these regulations, it could face fines and other sanctions.
3. Reputational Risk: Bank of Hawaii’s reputation could suffer significant damage if it is perceived to be mishandling customer information, has a security breach or is involved in fraudulent activities. This could lead to a loss of customers and damage its brand.
4. Interest Rate Risk: Bank of Hawaii is exposed to interest rate risk. If interest rates rise, the bank’s margins could be reduced, thus impacting its profitability. Conversely, if interest rates fall, the bank may lose some customers who move to lower interest rate products offered by competitors.