Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 47

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 47
---
ible to
risks arising
from climate
change, including
severe hurricanes
and sea
level rise,
heighten the 
threat we
face from
climate change. Additionally,
the impact
of climate
change in
the markets
that we
operate and
in other
global 
markets may
have the
effect of
increasing the
costs or
reducing the
availability of
insurance needed
for our
business operations. 
Climate change may also create transitional risks resulting from a shift to a low-carbon economy.
These transition risks may include 
changes in the legal and regulatory landscape, technology, consumer sentiment and preferences, and market demands that seek to 
mitigate the
effects
of climate
change. Changes
in the
legal
and regulatory
landscape may
additionally increase
our compliance 
costs.
These
climate-driven
changes
could
have
a
material
adverse
impact
on
asset
values
and
on
our
business
and
financial 
performance and those of our clients and customers. 
We
rely
on
other
companies
to
provide
key
components
of
our
business
infrastructure,
including
certain
of
our
core 
financial
transaction
processing
and
information
technology
and
security
services,
which
exposes
us
to
a
number
of 
operational risks that could have a material
adverse effect on us. 
Third parties provide key components of our business operations, such
as data processing, information security, recording 
and monitoring transactions,
online banking interfaces and
services, Internet connections and
network access. The most
important 
of these
third-party service providers
for us
is Evertec. We
are dependent on
Evertec for
the provision of
essential services to
our 
business, including certain of our core financial transaction
processing and information technology and
security services. As a result, 
we
are
particularly
exposed
to
the
operational
risks
of
Evertec,
including
those
related
to
its
security
architecture
and
potential 
breakdowns or failures of Evertec’s systems or internal
controls environment.
Over the
course of our
relationship with Evertec,
we have experienced
interruptions and delays
in key
services provided 
by Evertec, as well as cyber events