PART I ITEM 1A Risk Factors The future performance of Cigna’s business will depend in large part on Cigna’s ability to effectively implement and execute its strategic and operational initiatives that include: (1) driving growth in targeted geographies  product lines  buying segments and distribution channels; (2) improving its strategic and financial flexibility; and (3) pursuing additional opportunities in high-growth markets with particular focus on individuals. Successful execution of these strategic and operational initiatives depends on a number of factors including: If these initiatives fail or are not executed effectively  it could harm the Company’s consolidated financial position and results of operations. For example  reducing operating expenses while maintaining the necessary resources and the Company’s talent pool is important to the Company and  if not managed effectively  could have long-term effects on the business such as failure to maintain or improve the quality of its products and limiting its ability to retain or hire key personnel. In addition  to succeed  the Company must align its organization to its strategy. Cigna must effectively integrate its operations  including its most recently acquired businesses  actively work to ensure consistency throughout the organization  and promote a global mind-set and a focus on individual customers. If the Company fails to do so  it may be unable to grow as planned  or the result of expansion may be unsatisfactory. Also  the current competitive  economic and regulatory environment will require Cigna’s organization to adapt rapidly and nimbly to new opportunities and challenges. The Company will be unable to do so if it does not make important decisions quickly  define its appetite for risk specifically  implement new governance  managerial and These factors may increase in importance as Cigna continues to expand globally  and any one of these challenges could negatively affect the Company’s operations or its long-term growth. Currently  South Korea is the single largest geographic market in Cigna’s Global As a global company  Cigna’s business is increasingly exposed to risks inherent in foreign operations. These risks  which can vary substantially by market  include political  legal  operational  regulatory  economic and other risks  including government intervention and censorship that the Company does not face in its U.S. operations. The global nature of Cigna’s business and operations presents challenges including  but not limited  to those arising from: organizational processes smoothly and communicate roles and responsibilities clearly. Business Risks Future performance of Cigna’s business will depend on the Company’s ability to execute on its strategic and operational initiatives effectively. As a global company  Cigna faces political  legal  operational  regulatory  economic and other risks that present challenges and could negatively affect its multinational operations or the Company’s long-term growth. CIGNA CORPORATION -  2012 Form  10-K 21 differentiating Cigna’s products and services from those of its competitors by leveraging its health advocacy capabilities and other strengths in targeted markets  geographies and buyer segments; GLYPH<127> developing and introducing new products or programs  particularly in response to government regulation and the increased focus on consumer directed products; GLYPH<127> identifying and introducing the proper mix or integration of products that will be accepted by the marketplace; GLYPH<127> attracting and retaining sufficient numbers of qualified employees; GLYPH<127> attracting and engaging a sufficient number of qualified partners  including physicians partners in an environment with a growing shortage of primary care physicians; GLYPH<127> effectively managing balance sheet exposures  including the Company’s pension funding obligation; GLYPH<127> improving medical cost competitiveness in targeted markets; and GLYPH<127> reducing Cigna HealthCare’s medical operating expenses to achieve sustainable benefits. GLYPH<127> general economic and political conditions. GLYPH<127> political instability or acts of war  terrorism  natural disasters  pandemics in locations where Cigna operates; and GLYPH<127> the need to provide sufficient levels of technical support in different locations; GLYPH<127> challenges associated with managing more geographically diverse operations and projects; GLYPH<127> risk associated with managing Cigna’s partner relationships in accordance with business objectives in countries where our foreign businesses voluntarily operate or are required to operate with local business partners; GLYPH<127> reliance on local sales forces for some of its operations in countries that may have labor problems and less flexible employee relationships that can be difficult and expensive to terminate  or where changes in local regulation or law may disrupt the business operations; GLYPH<127> foreign currency exchange rates and fluctuations that may have an impact on the future costs or on future sales and cash flows from the Company’s international operations  and any measures that it may implement to reduce the effect of volatile currencies and other risks of its international operations may not be effective; GLYPH<127> varying regional and geopolitical business conditions and demands; GLYPH<127> discriminatory regulation  nationalization or expropriation of assets; GLYPH<127> price controls or other pricing issues and exchange controls or other restrictions that prevent it from transferring funds from these operations out of the countries in which it operates or converting local currencies that our foreign operations hold into U.S. dollars or other currencies; GLYPH<127>