4962--3/1/2007--AMERICAN_EXPRESS

related topics

{system, service, information}

{investment, property, distribution}

{regulation, government, change}

{operation, international, foreign}

{product, market, service}

{competitive, industry, competition}

{cost, contract, operation}

{condition, economic, financial}

{cost, operation, labor}

{capital, credit, financial}

{control, financial, internal}

{loss, insurance, financial}

Our brand and reputation are key assets of our Company and our business may be affected by how we are perceived in the marketplace. An increase in account data breaches and fraudulent activity using our Cards could lead to reputational damage to our brand and could reduce the use and acceptance of our charge and credit Cards. Our reengineering and other cost control initiatives may not prove successful and we may not realize all or a significant portion of the benefits that we intended. We have agreements with business partners in a variety of industries, including the airline industry, that represent a significant portion of our billed business. We are exposed to the risk of downturns in these industries, including bankruptcies of our partners, and the possible obligation to make payments to our partners. Our risk management policies and procedures may not be effective. Adverse currency fluctuations and foreign exchange controls could decrease revenue we receive from our international operations. Our access to financing, including securitizations, may be limited. If we are not able to invest successfully in, and compete at the leading edge of, technological developments across all our businesses, our revenue and profitability could be negatively affected. Our operating results may suffer because of substantial and increasingly intense competition worldwide in the payments industry. Banks, card issuers and card network operators generally are the subject of increasing global regulatory focus, which may impose costly new compliance burdens on our company and lead to decreased transaction volumes through our network. Existing and proposed regulation in the areas of consumer privacy and data use and security could decrease the number of charge and credit cards issued and could increase our costs. Global economic, political and other conditions may adversely affect trends in consumer spending and in travel If our global network systems are disrupted or we are unable to process transactions efficiently or at all, our revenue or profitability would be materially reduced. We rely on third-party providers of various computer systems and other services integral to the operations of our businesses. These third parties may act in ways that could harm our business. Resolution of our unresolved SEC staff comment may result in a change in the presentation of our reportable operating segments in our financial statements.

Full 10-K form ▸

4962--3/1/2007--AMERICAN_EXPRESS_CO