Chargeback Guarantee Financial Exposure: Riskified's business model often includes guaranteeing approved transactions, meaning the company absorbs financial losses from fraudulent transactions that bypass its detection systems, directly impacting profitability.

Intense Competitive Landscape: The fraud prevention and risk assessment market is highly competitive and rapidly evolving, with numerous established players and new entrants, which could lead to pricing pressure, reduced market share, and increased customer acquisition costs.

Data Security and Privacy Risks: Riskified handles large volumes of sensitive customer and transaction data, making it a target for cyberattacks and data breaches, which could result in significant financial penalties, reputational damage, and loss of customer trust.