Western Union 2014 Annual Report Download - page 161

2014 FORM 10-K
23
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
Global economic downturns or slower growth or declines in the money transfer, payment service, and other markets in which
we operate, including downturns or declines related to interruptions in migration patterns, and difficult conditions in global
financial markets and financial market disruptions could adversely affect our business, financial condition and results of
operations.
The global economy has experienced in recent years, and may experience, downturns, volatility and disruption, and we face
certain risks relating to such events, including:
• Demand for our services could soften, including due to low consumer confidence, high unemployment, or reduced global
trade.
• Our Consumer-to-Consumer money transfer business relies in large part on migration, which brings workers to countries
with greater economic opportunities than those available in their native countries. A significant portion of money transfers
are sent by international migrants. Migration is affected by (among other factors) overall economic conditions, the availability
of job opportunities, changes in immigration laws, and political or other events (such as war, terrorism or health emergencies)
that would make it more difficult for workers to migrate or work abroad. Changes to these factors could adversely affect
our remittance volume and could have an adverse effect on our business, financial condition and results of operations.
• Many of our consumers work in industries that may be impacted by deteriorating economic conditions more quickly or
significantly than other industries. Reduced job opportunities, especially in retail, healthcare, hospitality, and construction,
or overall weakness in the world’s economies could adversely affect the number of money transfer transactions, the principal
amounts transferred and correspondingly our results of operations. If general market softness in the economies of countries
important to migrant workers occurs, our results of operations could be adversely impacted. Additionally, if our consumer
transactions decline, if the amount of money that consumers send per transaction declines, or if migration patterns shift due
to weak or deteriorating economic conditions, our results of operations may be adversely affected.
• Our agents or clients could experience reduced sales or business as a result of a deterioration in economic conditions. As a
result, our agents could reduce their numbers of locations or hours of operation, or cease doing business altogether. Businesses
using our services may make fewer cross-currency payments or may have fewer customers making payments to them
through us, particularly businesses in those industries that may be more affected by an economic downturn.
• Our Business Solutions business is heavily dependent on global trade. A downturn in global trade or the failure of long-
term import growth rates to return to historic levels could have an adverse effect on our business, financial condition and
results of operations. Additionally, as customer hedging activity in our Business Solutions business generally varies with
currency volatility, we have experienced and may experience in the future lower foreign exchange revenues in periods of
lower currency volatility.
• Our exposure to receivables from our agents, consumers and businesses could impact us. For more information on this risk,
see risk factor, "We face credit, liquidity and fraud risks from our agents, consumers and businesses that could adversely
affect our business, financial condition and results of operations."