MoneyGram 2013 Annual Report Download - page 23

Table of Contents
We rely on a combination of patent, trademark and copyright laws, trade secret protection and confidentiality and license agreements to protect
the intellectual property rights related to our products and services. We also investigate the intellectual property rights of third parties to prevent
our infringement of those rights. We may be subject to third party claims alleging that we infringe their intellectual property rights or have
misappropriated other proprietary rights. We may be required to spend resources to defend such claims or to protect and police our own rights.
Some of our intellectual property rights may not be protected by intellectual property laws, particularly in foreign jurisdictions. The loss of our
intellectual property protection, the inability to secure or enforce intellectual property protection or to successfully defend against claims of
intellectual property infringement could harm our business, prospects, financial condition and results of operation.
Failure to attract and retain key employees could have a material adverse impact on our business.
Our success depends to a large extent upon our ability to attract and retain key employees. The lack of management continuity or the loss of one
or more members of our executive management team could harm our business and future development. A failure to attract and retain key
personnel could also have a material adverse impact on our business.
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. 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 U.S. The acquisition and integration of businesses
involve a number of risks. Such risks include, among others:
Risks associated with acquiring or starting new businesses could result in increased costs and other operating inefficiencies, which could have an
adverse effect on our business, financial condition and results of operations.
We may not be able to implement our global transformation program as planned, the expected amount of costs associated with such program
may exceed our forecasts and we may not be able to realize the full amount of estimated savings from such program.
We have announced our global transformation program and may implement additional initiatives in future periods. While our global
transformation program is designed to enhance compliance, fuel multi-
channel growth and improve our cost structure, there can be no assurance
that the anticipated savings will be realized. Further, the costs to implement such initiatives may be greater than expected. If we do not realize
the anticipated savings from these initiatives, or if the costs to implement them are greater than expected, our business, financial condition, and
results of operations could be adversely affected.
Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-
Oxley Act could have a material adverse effect
on our business.
We are required to certify and report on our compliance with the requirements of Section 404 of the Sarbanes-
Oxley Act, which requires annual
management assessments of the effectiveness of our internal control over financial reporting and a report by our independent registered public
accounting firm addressing the effectiveness of our internal control over financial reporting. If we fail to maintain the adequacy of our internal
controls, as such standards are modified, supplemented or amended from time to time, we may not be able to ensure that we can conclude on an
ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404. In order to achieve effective
internal controls we may need to enhance our accounting systems or processes, which could increase our cost of doing business. Any failure to
achieve and maintain an effective internal control environment could have a material adverse effect on our business.
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• risks in connection with acquisitions and start-
ups and potential expenses that could be incurred in connection therewith;
•
risks related to the integration of new businesses, including integrating facilities, personnel, financial systems, accounting systems,
distribution, operations and general operating procedures;
• the diversion of capital and management’
s attention from our core business;
•
the impact on our financial condition and results of operations due to the timing of the new business or the failure of the new business to
meet operating expectations; and
•
the assumption of unknown liabilities relating to the new business.