MoneyGram 2009 Annual Report Download - page 22

Table of Contents
If we are unable to effectively operate and scale our technology to match our business growth, our business, financial condition and
results of operations could be adversely affected.
Our ability to continue to provide our services to a growing number of agents and consumers, as well as to enhance our existing services
and offer new services, is dependent on our information technology systems. If we are unable to effectively manage the technology
associated with our business, we could experience increased costs, reductions in system availability and loss of agents or consumers. Any
failure of our systems in scalability, reliability and functionality could adversely impact our business, financial condition and results of
operations.
The operation of retail locations and acquisition or start-up of businesses create risks and may adversely affect our operating results.
We operate Company-owned retail locations for the sale of our products and services. After substantial capital investment to open retail
locations, it is uncertain whether these locations will be profitable. We may be subject to additional laws and regulations that are
triggered by our ownership of retail locations and our employment of individuals who staff our retail locations. There are also certain
risks inherent in operating any retail location, including theft, personal injury and property damage and long-term lease obligations.
We may, from time to time, acquire or start up businesses both inside and outside of the United States. The acquisition and integration of
businesses, involve a number of risks. We may not be able to successfully integrate businesses that we acquire or open, including their
facilities, personnel, financial systems, distribution, operations and general operating procedures. If we fail to successfully integrate
acquisitions, we could experience increased costs and other operating inefficiencies, which could have an adverse effect on our results of
operations. The diversion of capital and management's attention from our core business that results from acquiring or opening new
businesses could adversely affect our business, financial condition and results of operations.
There are a number of risks associated with our international sales and operations that could adversely affect our business.
We provide money transfer services between and among approximately 190 countries and territories and continue to expand in various
international markets. Our ability to grow in international markets and our future results could be harmed by a number of factors,
including:
• changes in political and economic conditions and potential instability in certain regions;
• changes in regulatory requirements or in foreign policy, including the adoption of foreign laws detrimental to our business;
• possible increased costs and additional regulatory burdens imposed on our business;
• burdens of complying with a wide variety of laws and regulations;
• possible fraud of theft losses, and lack of compliance by international representatives in foreign legal jurisdictions where collection
and legal enforcement may be difficult or costly;
• reduced protection for our intellectual property rights;
• unfavorable tax rules or trade barriers;
• inability to secure, train or monitor international agents; and
• failure to successfully manage our exposure to foreign currency exchange rates, in particular with respect to the euro.
Unfavorable outcomes of tax positions we take could adversely affect our tax expense.
We file tax returns and take positions with respect to federal, state, local and international taxation, including positions that relate to our
2007 and 2008 net security losses, and our tax returns and tax positions are subject to review and audit by taxing authorities. An
unfavorable outcome of a tax review or audit could result in higher tax expense, which could adversely affect our results of operations
and cash flows. We establish reserves for material,
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