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Bank of New York Mellon
Financial services / Banking and Financial Services
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Risks
1. Reputational Risk – A major risk related to BNY Mellon is associated with its brand image. By virtue of being one of the oldest banks in the US, BNY Mellon has gone through several mergers and acquisitions to build its current structure. This process of cobbling together different technologies and customer operations has generated a number of reputational risk issues due to instances where operations and transactions have not been properly tracked or completed.
2. Cybersecurity Risk – The expanding reliance on technology and digital services has significantly increased the risk of cybersecurity threats. BNY Mellon processes millions of transactions via its technological infrastructure daily and is thus an attractive target for malicious actors. BNY Mellon has identified information security as a priority and has established robust governance frameworks, but the threat of cybercrime remains a constant risk.
3. Regulatory Risk – Regulatory compliance is an important risk factor for BNY Mellon, as the bank has to adhere to a range of laws and regulations related to customer privacy and data governance. BNY Mellon continually focuses on maintaining a culture of compliance and has implemented numerous processes to ensure that it is adhering to applicable laws and regulations.
4. Market Risk – BNY Mellon is exposed to market-related risk due to its various financial products. BNY Mellon is affected by changes in financial markets as they can impact investment returns, trading activity, and overall bank performance. As the cost of funds for BNY Mellon can fluctuate in tandem with market movements, the bank has to manage its activities carefully in order to stay within acceptable limits and reduce its exposure to market risk.