MoneyGram 2011 Annual Report Download - page 64

Table of Contents
Operational Risk
Operational risk represents the potential for loss resulting from our operations. This may include, but is not limited to, the risk of fraud by employees or
external parties, business continuation and disaster recovery, errors related to transaction processing and technology, unauthorized transactions and breaches
of information security and compliance requirements. This risk may also include the potential legal actions that could arise as a result of an operational
deficiency or as a result of noncompliance with applicable regulatory requirements. Management has direct responsibility for identifying, controlling and
monitoring operational risks within their business. Business managers maintain a system of controls to provide transaction authorization and execution,
safeguarding of assets from misuse or theft, and to ensure the quality of financial and other data. Our Business Resiliency group works with each business
function to develop plans to support business resumption activities including technology, networks and data centers. Our internal audit function tests the
system of internal controls through risk−based audit procedures and reports on the effectiveness of internal controls to executive management and the Audit
Committee of the Board of Directors.
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