Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 34

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 34
---
 drive changes to our income growth and asset quality. Heightened geopolitical andmacroeconomic risk globally, including uncertainty in international trade policy, is subject to close monitoring and review.                                                                                                    |
| Technology andcybersecurity risk                                                                          | ~     | There is an increased risk of service disruption or loss of data resulting from technology failures or malicious activities frominternal or external threats. We continue to monitor changes to the technology and threat landscape, including those arisingfrom ongoing geopolitical and macroeconomic events alongside third-party breaches and the impact this may have on riskmanagement. We operate a continuous improvement programme to help support the resilience and stability of our technologyoperations and counter a fast-evolving and heightened cyber threat environment.                         |
| Environmental, socialand governance(‘ESG’) risks                                                          | ~     | We are subject to ESG risks, including in relation to climate change, nature and human rights. These risks have increased dueto the increasing frequency of severe weather events, diverging national agendas and a more complex regulatory environment.Financial institutions’ actions and investment decisions in respect of ESG matters continue to be subject to heightened scrutinyby stakeholders. Failure to meet these evolving expectations may have financial and non-financial impacts, includingreputational, legal and regulatory compliance risks.                                                  |
| Financial crime risk                                                                                      | ~     | We are exposed to financial crime risk from our customers, staff and third parties engaging in criminal activity. The financialcrime risk environment is heightened due to increasingly complex geopolitical challenges, the macroeconomic outlook, thecomplex and dynamic nature of sanctions and export control compliance, evolving financial crime regulations, rapidtechnological developments, an increasing number of national data privacy requirements and the increasing sophistication offraud. As a result, we will continue to face the possibility of regulatory enforcement and reputational risk. |
| Digitalisation andtechnologicaladvances                                                                   | ~     | Developments in technology and changes in regulations continue to enable new entrants to the banking industry as well asnew products and services offered by competitors. This challenges us to continue to innovate with new digital capabilities andevolve our products, to attract, retain and best serve our customers. Along with opportunities, new technology, includinggenerative AI, can introduce risks and disruption. We seek to manage technology developments with appropriate controls andoversight.                                                                                               |
| Evolving regulatoryenvironment risk                                                                       | }     | The regulatory and compliance risks are set against continued geopolitical risk and regulatory focus on models, data,regulatory reporting, financial resilience, ESG, technology and generative AI, financial crime