HSBC 2009 Annual Report Download - page 9

7
– the practices, pricing or responsibilities of
financial institutions serving their consumer
markets;
– expropriation, nationalisation, confiscation
of assets and changes in legislation relating
to foreign ownership;
– changes in bankruptcy legislation in the
principal markets in which HSBC operates
and the consequences thereof;
– general changes in government policy that
may significantly influence investor
decisions, in particular in markets in which
HSBC operates, including financial
institutions newly taken into state
ownership on a full or partial basis;
– extraordinary government actions as a result
of current market turmoil;
– 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 product
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;
and
– the success of HSBC in addressing
operational, legal and regulatory, and
litigation challenges.