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Risks
1. Credit Risk: Credit risk is the risk of a Synchrony Financial borrower’s inability to make payments or the non-repayment of a loan. This could lead to losses for Synchrony Financial.
2. Market Risk: Market risk from volatile interest rates, asset prices, and the stock market may negatively affect Synchrony Financial’s revenue.
3. Operational Risk: Operational risk can arise from errors or omissions in Synchrony Financial’s internal processes. It could also arise from fraudulent activities or cyber-attacks.
4. Liquidity Risk: Low liquidity may prevent Synchrony Financial from being able to meet its obligations in a timely manner.
5. Reputational Risk: Negative publicity, not meeting customer expectations, and failing to comply with regulations could harm Synchrony Financial’s reputation.
6. Regulatory Risk: Synchrony Financial operates under the regulations of multiple government agencies and may be subject to potential fines and other enforcement measures if they are not in compliance.