Archer Daniels Midland 2010 Annual Report Download - page 18

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14
Item 1A.
RISK FACTORS (Continued)
The Company’s risk management strategies may not be effective.
The Company‘s business is affected by fluctuations in agricultural commodity prices, transportation costs, energy
prices, interest rates, and foreign currency exchange rates. The Company engages in hedging strategies to manage
these risks. However, these hedging strategies may not be successful in mitigating the Company‘s exposure to
these fluctuations. See ―Item 7A. Quantitative and Qualitative Disclosures About Market Risk.‖
The Company has limited control over and may not realize the expected benefits of its equity investments and
joint ventures.
The Company has many joint ventures and investments of which the Company has limited control as to the
governance and management activities of these investments. The Company expects to benefit from these
investments, which typically aim to expand or enhance the Company‘s market for its products or offer other
benefits including but not limited to geographic or product line expansion. The Company may encounter
unanticipated operating issues or financial results related to these investments that may impact the Company‘s
revenues and operating results.
The Company’s information technology systems, processes, and sites may suffer interruptions or failures which
may affect the Company’s ability to conduct its business.
The Company‘s information technology systems, some of which are dependent on services provided by third-
parties, provide critical data connectivity, information and services for internal and external users. These
interactions include, but are not limited to, ordering and managing materials from suppliers, converting raw
materials to finished products, inventory management, shipping products to customers, processing transactions,
summarizing and reporting results of operations, complying with regulatory, legal or tax requirements, and other
processes necessary to manage the business. The Company has put in place business continuity plans for its critical
systems. However, if the Company‘s information technology systems are damaged, or cease to function properly
due to any number of causes, such as catastrophic events, power outages, security breaches, and the Company‘s
business continuity plans do not effectively compensate on a timely basis, the Company may suffer interruptions in
the ability to manage its operations, which may adversely impact the Company‘s revenues and operating results.
Item 1B.
UNRESOLVED STAFF COMMENTS
The Company has no unresolved staff comments.