Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 259

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 259
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 be increased if our prevent-and-detect measures are less effective because of remote and home working. Employee misconduct or regulatory sanctions if a regulator deems HSBC‘s actions to deter such activity to be insufficient, could have a material adverse effect on our business, financial condition, results of operations, prospects and reputation. The delivery of our strategic actions is subject to execution risk and we may not achieve all of the expected benefits of our strategic initiatives Effective management of transformation initiatives is required to achieve the Group’s strategic priorities, which includes delivering both on externally driven programmes and on our own key business initiatives which seek to deliver growth, operational resilience and efficiencies. The scale, complexity, and concurrent demands of such transformation initiatives can result in heightened execution risk. The Group’s strategy has been supported by global trends including the continued economic development in emerging markets, growth of international trade and capital flows, and wealth creation, particularly in faster-growing markets. The development and implementation of our strategy requires difficult and complex judgements, including forecasts of economic conditions in various parts of the world. We may fail to correctly identify the relevant factors in making decisions as to capital deployment and cost reduction. We may also encounter unpredictable changes in the external environment that are disadvantageous to our strategy. In October 2024, the Group announced a plan to simplify its organisational structure to accelerate delivery against the Group’s strategic priorities. Effective 1 January 2025, the Group operates through four new businesses: Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking. The Group’s functions are being realigned to support these four businesses. The execution of this reorganisation will result in significant organisational design changes throughout the Group. There is a risk that the reorganisation may not achieve some or all of its goals and may fail to deliver or achieve the expected benefits of the Group’s strategic initiatives. Our ability to execute strategic change may be limited by our operational capacity, effectiveness of our change management controls, structural challenges posed by mergers and acquisitions, and the potential for unforeseen changes in the market and/or regulatory environment in which we operate. The global economic outlook remains uncertain, particularly with regard to inflation, changes in legislation and geopolitical tensions. Therefore, there remains a risk that our cost and investment actions may not be sufficient to deliver or achieve our expected benefits of the Group’s strategic initiatives. This could have a material adverse effect on our customers, business, financial condition, prospects, operational resilience and reputation. Our risk management measures may not be successful The management of risk is an integral part