Impacted Domains: Operational, Financial, Reputational
Impacted Industries: All
Date: August 22, 2025

Sustained capital outflows from U.S. markets are pressuring firm valuations and increasing the cost of financing across sectors.

So What:
Unprepared organizations face valuation blind spots, constrained access to capital, and declining investor confidence as liquidity tightens and outflows reinforce market instability. Firms lacking proactive communication and scenario planning are at the highest risk of sudden valuation shocks.

Risk Value:
$20M–$110M for mid-size firms, depending on sector exposure, debt structure, and investor mix.

Mitigation Cost:
$150K–$700K for mid-size organizations to strengthen forecasting, transparency, and stakeholder engagement.

What to Do:

• Increase transparency around growth fundamentals, revenue drivers, and valuation assumptions.

• Build scenario plans for market corrections, liquidity tightening, and elevated financing costs.

• Engage consistently with investors and regulators to reinforce confidence and reduce uncertainty.

Risk AIQ Score: 8

🔗 Reuters: Global Markets – Fund Outflows Analysis