Western Union 2011 Annual Report Download - page 29

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ITEM 1A. RISK FACTORS
There are many factors that affect our business, financial condition and results of operations, some of which
are beyond our control. These risks include, but are not limited to, the risks described below. Such risks are
grouped according to:
• Risks Relating to Our Business and Industry;
• Risks Related to Our Regulatory and Litigation Environment; and
• Risks Related to the Spin-Off.
You should carefully consider all of these risks.
Risks Relating to Our Business and Industry
If consumers’ confidence in our business or in traditional money transfer and payment service providers
generally deteriorates, our business, financial condition and results of operations could be adversely affected.
Our business is built on consumers’ confidence in our brands and our ability to provide fast, reliable money
transfer and payment services. Erosion in consumers’ confidence in our business, or in traditional money transfer
and payment service providers as a means to transfer money, could adversely impact transaction volumes which
would in turn adversely impact our business, financial condition and results of operations.
A number of factors could adversely affect consumers’ confidence in our business, or in traditional money
transfer and payment service providers generally, many of which are beyond our control, and could have an
adverse impact on our results of operations. These factors include:
• changes or proposed changes in laws or regulations that have the effect of making it more difficult for
consumers to transfer money using traditional money transfer and payment service providers;
• failure of our agents or subagents to deliver services in accordance with our requirements;
• reputational concerns resulting from actual or perceived events;
• actions by federal, state or foreign regulators that interfere with our ability to transfer consumers’ money
reliably, for example, attempts to seize money transfer funds, or limit our ability to or prohibit us from
transferring money in certain corridors;
• federal, state or foreign legal requirements, including those that require us to provide consumer data to a
greater extent than is currently required;
• any significant interruption in our systems, including by fire, natural disaster, power loss,
telecommunications failure, terrorism, vendor failure, unauthorized entry and computer viruses or
disruptions in our workforce; and
• any breach of our security policies or legal requirements resulting in a compromise of consumer privacy or
data use and security.
Many of our money transfer consumers are migrants. Consumer advocacy groups or governmental agencies
could consider migrants to be disadvantaged and entitled to protection, enhanced consumer disclosure, or other
different treatment. If consumer advocacy groups are able to generate widespread support for positions that are
detrimental to our business, then our business, financial condition and results of operations could be adversely
affected.
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