Voya Financial VOYA Business Risk Report

A. Market Risk
Voya Financial is exposed to market risk primarily due to fluctuations in interest rates and equity prices, which can affect the company’s investment portfolio and the value of its insurance liabilities. Volatile financial markets can impact Voya’s revenue, particularly within its retirement, investment management, and insurance products.

B. Credit Risk
Credit risk arises for Voya Financial from the potential that issuers of the securities held in the company’s investment portfolio may fail to meet their obligations. This risk is managed by maintaining a diversified portfolio and conducting thorough credit analyses of the investments.

C. Liquidity Risk
Voya Financial must manage liquidity risk to meet obligations as they come due, particularly relevant in handling claims and benefits payments. The company maintains conservative liquidity strategies to ensure sufficient assets are available for these occurrences without disturbing investment returns significantly.

A. Technology Risks
Voya Financial’s reliance on technology to deliver products and service clients introduces risks pertaining to cyber attacks, data breaches, and system failures. The firm invests heavily in technological infrastructure and cybersecurity to mitigate these risks.

B. Regulatory Risks
Regulatory risks are significant for Voya Financial, given the evolving landscape of financial regulations across the various jurisdictions it operates in. Continuous changes in regulations such as those for consumer protection, insurance standards, and retirement products necessitate ongoing compliance efforts.

C. Business Continuity Risks
Business continuity risks for Voya Financial include disasters or disruptions that can halt business operations, such as pandemics or cyber incidents. The company maintains comprehensive disaster recovery and business continuity plans to address and mitigate these risks.

A. Competition Risks
Voya Financial operates in a highly competitive financial services industry where it competes with other insurers, banks, and financial service providers. Staying competitive requires continuous innovation and the ability to attract and retain talented employees.

B. Expansion Risks
As Voya Financial seeks growth through expansion into new markets and product offerings, the company faces risks related to market acceptance and regulatory challenges in unfamiliar territories.

C. Reputation Risks
Reputation risks are crucial for Voya Financial due to the trust-sensitive nature of financial services. Any negative publicity or failing in corporate governance could significantly affect customer confidence and business operations.

A. Regulatory Compliance Risks
Ongoing regulatory compliance is imperative for Voya Financial, particularly concerning financial reporting standards, privacy laws, and anti-money laundering regulations. The company must stay abreast of new regulations to maintain compliance and avoid financial penalties.

B. Legal Risks
Legal risks for Voya Financial include potential lawsuits or disputes over contracts, customer relations, or compliance breaches. The company employs a team of legal professionals to manage these risks proactively and ensure that contractual obligations are clear and enforceable.

C. Data Privacy and Security Risks
Data privacy and security are of paramount importance to Voya Financial as breaches could lead to significant reputational and financial damage. The firm adopts stringent data protection policies and invests in secure technologies to protect sensitive information.

A. Economic Risks
Economic downturns or unstable economic conditions directly impact Voya Financial’s operations and financial performance. Such environments can lead to decreased investment earnings and higher incidences of claims and benefit payouts.

B. Geopolitical Risks
Geopolitical tensions or instability in regions where Voya Financial operates or invests can lead to risky investment conditions and disrupt business operations. The company continually evaluates geopolitical conditions as part of its strategic planning.

C. Natural Disaster Risks
Natural disasters such as hurricanes, flooding, or earthquakes pose risks to Voya Financial’s property investments and can disrupt operations in affected areas. The company incorporates geographic diversification and insurance covers to mitigate these risks.