HSBC 2008 Annual Report Download - page 9

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– other unfavourable political or diplomatic
developments producing social instability or
legal uncertainty which in turn may affect
demand for HSBC’s products and services;
– the costs, effects and outcomes of
regulatory reviews, actions or litigation,
including any additional compliance
requirements; and
– the effects of competition in the markets
where HSBC operates including increased
competition from non-bank financial
services companies, including securities
firms.
• factors specific to HSBC:
– the success of HSBC in adequately
identifying the risks it faces, such as the
incidence of loan losses or delinquency, and
managing those risks (through account
management, hedging and other
techniques). Effective risk management
depends on, among other things, HSBC’s
ability through stress testing and other
techniques to prepare for events that cannot
be captured by the statistical models it uses.
– the success of HSBC in addressing
operational, legal and regulatory and
litigation challenges.