Bank Failures Start Appearing in Risk Factors After SVB Collapse

Add bank failures to the list of warnings that companies give to shareholders, alongside geopolitical crises, climate change, economic turmoil and lawsuits.

The collapse of several regional lenders in quick succession since the beginning of last month is spurring some publicly traded companies to add language identifying the banking sector as a potential area with negative consequences to the “risk factors” they include in regulatory filings.

Management is required to list certain situations that could have an adverse effect on business and therefore the performance of a company’s shares. At least nine firms have updated their risk factors — circumstances ...