Chrysler 2015 Annual Report Download - page 22

22 2015 | ANNUAL REPORT
Risk Factors
A disruption or security breach in our information technology systems could disrupt our business and adversely impact
our ability to compete.
A significant malfunction, disruption or security breach compromising the operation of our information technology
systems could damage our reputation, disrupt our business and adversely impact our ability to compete.
Our ability to keep our business operating effectively depends on the functional and efficient operation of our
information, data processing and telecommunications systems, including our vehicle design, manufacturing, inventory
tracking and billing and payment systems. A significant or large-scale malfunction or interruption of any one of our
computer or data processing systems could adversely affect our ability to manage and keep our operations running
efficiently, and damage our reputation if we are unable to track transactions and deliver products to our dealers and
customers. A malfunction or security breach that results in a wider or sustained disruption to our business could have
a material adverse effect on our business, reputation, financial condition and results of operations.
In addition to supporting our operations, we use our systems to collect and store confidential and sensitive data,
including information about our business, our customers and our employees. As our technology continues to evolve,
we anticipate that we will collect and store even more data in the future and that our systems will increasingly use
remote communication features that are sensitive to both willful and unintentional security breaches. Much of our
value is derived from our confidential business information, including vehicle design, proprietary technology and
trade secrets, and to the extent the confidentiality of such information is compromised, we may lose our competitive
advantage and our vehicle sales may suffer. We also collect, retain and use personal information, including data we
gather from customers for product development and marketing purposes, and data we obtain from employees. In the
event of a breach in security that allows third parties access to this personal information, we are subject to a variety
of ever-changing laws on a global basis that require us to provide notification to the data owners, and that subject us
to lawsuits, fines and other means of regulatory enforcement. Our reputation could suffer in the event of such a data
breach, which could cause consumers to purchase their vehicles from our competitors. Ultimately, any significant
compromise in the integrity of our data security could have a material adverse effect on our business.
We may not be able to adequately protect our intellectual property rights, which may harm our business.
Our success depends, in part, on our ability to protect our intellectual property rights. If we fail to protect our
intellectual property rights, others may be able to compete against us using intellectual property that is the same
as or similar to our own. In addition, there can be no guarantee that our intellectual property rights are sufficient to
provide us with a competitive advantage against others who offer products similar to ours. Despite our efforts, we
may be unable to prevent third parties from infringing our intellectual property and using our technology for their
competitive advantage. Any such infringement and use could adversely affect our business, financial condition or
results of operations.
The laws of some countries in which we operate do not offer the same protection of our intellectual property rights as
do the laws of the U.S. or Europe. In addition, effective intellectual property enforcement may be unavailable or limited
in certain countries, making it difficult for us to protect our intellectual property from misuse or infringement there.
Our inability to protect our intellectual property rights in some countries may harm our business, financial condition or
results of operations.
We are subject to risks relating to international markets and exposure to changes in local conditions.
We are subject to risks inherent to operating globally, including those related to:
exposure to local economic and political conditions;
import and/or export restrictions;
multiple tax regimes, including regulations relating to transfer pricing and withholding and other taxes on
remittances and other payments to or from subsidiaries;
foreign investment and/or trade restrictions or requirements, foreign exchange controls and restrictions on the
repatriation of funds; and
the introduction of more stringent laws and regulations.