MoneyGram 2005 Annual Report Download - page 45

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Table of Contents
fringement action could harm our business and prospects.
• Litigation or Investigations. Our business and results of operations may be materially adversely affected by lawsuits or investigations which could result in
material settlements, fines or penalties.
• Competition. We may be unable to compete against our large competitors, niche competitors or new competitors that may enter the markets in which we
operate.
• U.S. Regulation. Failure by us or our agents to comply with the laws and regulatory requirements of federal and state regulatory authorities, or changes in
laws, regulations or other industry practices and standards could have an adverse effect on our results of operations.
• International Regulation. Imposition of additional regulatory requirements in the foreign countries in which we operate could adversely affect our
business.
• Internal Controls. Our inability to maintain compliance with the internal control provisions of Section 404 of the Sarbanes-Oxley Act of 2002 could have a
material adverse effect on our business and stock price.
• Agent Credit and Fraud Risks. We may face credit and fraud exposure if we are unable to collect funds from our agents who receive the proceeds from the
sale of our payment instruments.
• Investment Portfolio Credit Risk. If an issuer of securities in our investment portfolio defaulted on its payment obligations, the value of our securities
would decline, adversely affecting the value of our investment portfolio.
• Interest Rate Fluctuations. Fluctuations in interest rates may materially adversely affect revenue derived from investment of funds received from the sale
of our payment instruments and commissions paid to financial institution customers.
• Market Value of Securities. Material changes in the market value of securities we hold may materially adversely affect our results of operation and
financial condition.
• Liquidity. Material changes in our need for and the availability of liquid assets may affect our ability to meet our payment service obligations and may
materially adversely affect our results of operation and financial condition.
• Network and Data Security. If we face system interruptions and system failures due to defects in our software, development delays and installation
difficulties, or for any other reason, our business could be harmed.
• Business Interruption. In the event of a breakdown, catastrophic event, security breach, improper operation or any other event impacting our systems or
processes or our vendors' systems or processes, or improper action by our employees, agents, customer financial institutions or third party vendors, we could
suffer financial loss, loss of customers, regulatory sanctions and damage to our reputation.
• International. Our business and results of operations may be adversely affected by political, economic or other instability in countries in which we have
material agent relationships.
• Anti-Takeover Provisions. Provisions in our charter documents and specific provisions of Delaware law may have the effect of delaying, deterring or
preventing a merger or change in control of our Company.
• Other Factors. Additional risk factors may be described in our other filings with the Securities and Exchange Commission from time to time.
Actual results may differ materially from historical and anticipated results. These forward-looking statements speak only as of the date on which such
statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date.
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk disclosure is discussed under "Enterprise Risk Management" in Item 7 of this Annual Report on Form 10-K.
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