A mandatory section of a company's registration statement listing the specific risks that could materially affect its business, financial condition, or stock price — required by the SEC so investors see the company's own account of what could go wrong, not just the upside case.
Risk factors are written by the company's own lawyers, which makes them an unusually candid (if legally defensive) account of what could actually go wrong — competition, regulation, customer concentration, key-person dependence. Reading this section is one of the fastest ways to understand a business's real vulnerabilities, rather than relying on the more optimistic framing that tends to dominate the rest of a filing.
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