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Industry risk report marketing.

To call or not to call--that's the question that telemarketers and their clients are asking now that a tangle of Do- Not-Call lists and other federal and state regulations stand between them and a successful calling campaign. If they think they can dial up an answer overseas, they could discover that the emerging risks of outsourcing may put their marketing on hold, too.
Company Name Location CRO

Acxiom Little Rock, Bill Bruton,
Corporation Ark. Risk Management
 Leader

Convergys Cincinnati Carol Fox,
Corporation Ohio Director, Risk
 Management

Digitas Inc. Boston, Mass. Withheld

Google Inc. Mountain View, Withheld
 Calif.

Interpublic New York, N.Y. Thomas A. Dowling,
Group SVP and Chief Risk
 Officer

Lamar Baton Rouge, La. James Robertson,
Advertising Corporate Safety
Company Director

Omnicom Group New York, N.Y. James McGuire,
 Director, Risk
 Management

R.R. Donnelley Chicago, Ill. Linda Lull,
and Sons Inc. Corporate Risk
 Manager

Viad Phoenix, Ariz. Rosemary Lietz,
Corporation Director,
 Corporate Insurance

West Omaha, Neb. Toni Wieczorek,
Corporation Risk Management
 Coordinator

 2004 Total
Company Name CFO Revenue

Acxiom Rodger S. Kline, $1,223 million
Corporation Chief Finance
 and Administration
 Leader

Convergys Earl C. Shanks $2,487 million
Corporation

Digitas Inc. Brian K. Roberts $382 million

Google Inc. George Reyes $3,189 million

Interpublic Robert Thompson $5,863 million
Group

Lamar Keith A. Istre $883 million
Advertising
Company

Omnicom Group Randall J. Weisenburger $9,747 million

R.R. Donnelley Glenn Richter $7,156 million
and Sons Inc.

Viad Ellen M. Ingersoll $785 million
Corporation

West Paul M. Mendlik $1,217 million
Corporation

 No. of Primary
Company Name Employees Broker Captives

Acxiom 6,600 Withheld No
Corporation

Convergys 66,300 Withheld No
Corporation

Digitas Inc. 1,500 Withheld No

Google Inc. 3,021 Withheld No

Interpublic 43,400 Aon Triad Assurance
Group Co. Ltd.
 (Bermuda)

Lamar 3,000 Withheld No
Advertising
Company

Omnicom Group 61,000 Withheld No

R.R. Donnelley 43,000 Withheld No
and Sons Inc.

Viad 3,025 Withheld No
Corporation

West 2,800 Withheld No
Corporation

Company Name Risk Exposure:

Acxiom Changes in the consumer and business information
Corporation industries and markets; a breach of security in
 the company's computer systems that could interrupt
 or interfere with its normal operations; the impact
 of changing legislative, judicial, accounting and
 regulatory environments in the places where the
 company operates.

Convergys The company's failure to keep its technology up-to-
Corporation date, as well as the threat of defaults and errors
 in this technology; emergency interruption of data
 centers and customer/employee care centers; the
 company's dependence on the continuation of global
 business trends like outsourcing; the company's
 failure to successfully manage consolidation.

Digitas Inc. The company's failure to meet clients' expectations,
 which could result in decreased business, financial
 losses and negative publicity in the future; acts
 of war or terrorism that could adversely affect the
 company's business; fluctuations in quarterly
 revenues and operating results that may negatively
 impact Digitas' stock prices; the company's ability
 to maintain its reputation and expand name
 recognition.

Google Inc. Competition from other Internet advertising companies
 and destination Web sites that also bundle their
 services with Internet access; the reduction in
 spending by or loss of advertisers could seriously
 harm the company's business; the company's ability
 to expand its base of users, advertisers and network
 members.

Interpublic The company's ability to attract new clients and
Group retain existing clients, as well as the continued
 financial success of the company's current clients;
 potential adverse effects if the company is required
 to recognize additional impairment charges or other
 adverse accounting-related developments; risks
 associated with the company's remaining motorsports
 commitments.

Lamar Risks and uncertainties relating to the company's
Advertising significant indebtedness; the demand for outdoor
Company advertising; the company's ability to renew expiring
 contracts at favorable rates; the integration of
 companies that the company acquires; the regulation
 of the outdoor advertising industry.

Omnicom Group Risks associated with the company's international
 business, including currency fluctuations, political
 instability and exchange controls; the company's
 continued ability to develop creative solutions that
 meet client needs; Omnicom's ability to protect its
 business from negative interaction with government
 agencies and consumer groups.

R.R. Donnelley The rate of migration from paper-based forms to
and Sons Inc. digital formats and its effect on the company's
 business operations; changes in capital markets
 that could affect the demand for financial printing;
 changes in postal rates and postal regulations;
 changes in the advertising and printing markets;
 the company's ability to secure and defend
 intellectual property rights.

Viad Changes in customer-demand patterns that could
Corporation adversely affect the company's operations; industry
 alliances, consolidation and growth patterns in the
 industries in which Viad competes; the possibility
 of natural disasters and other catastrophes that
 could negatively affect or interrupt the company's
 business operations.

West Risks in connection with completed or potential
Corporation acquisitions; increases in the cost of telephone
 and data services or significant interruptions in
 such services that could seriously harm the company's
 business and operations; risks associated with
 software failure and network security.

Company Name Risk Strategies:

Acxiom The company does not use use derivative or other
Corporation financial instruments to manage risks associated
 with interest rates or foreign-currency risks. The
 company's board of directors deals with issues of
 risk management, and the company maintains a risk
 management department, as well.

Convergys Convergys maintains property and business-
Corporation interruption insurance coverage. The company's
 risk management strategy also addresses market
 risks and includes the use of derivative instruments
 to reduce financial losses resulting from fluctuating
 exchange and interest rates.

Digitas Inc. Digitas carries general liability insurance coverage,
 as well as property/casualty coverage and a builder's
 risk insurance policy to mitigate losses resulting
 from fires or other catastrophic risks. The company
 also maintains an environmental liability policy.
 Digitas carries workers' compensation insurance and
 a business-interruption policy, as well.

Google Inc. Google purchases various insurance policies to
 mitigate a variety of risks and losses, including
 directors and officers liability coverage.
 Additionally, the company recently established a
 foreign-exchange hedging program designed to
 minimize the future potential impact of changes
 in foreign-currency exchange rates.

Interpublic The company has purchased life insurance policies on
Group participants' lives to assist in the funding of the
 deferred compensation liability.

Lamar Lamar has determined that it is not economical to
Advertising obtain insurance against losses from hurricanes and
Company other natural disasters. Instead, the company has
 developed contingency plans to deal with the threat
 of hurricanes. Additionally, the company self-insures
 a group health insurance plan and maintains outside
 coverage for workers' compensation and general
 liability.

Omnicom Group The company's financial risk management effort
 includes the use of short-term forward foreign-
 exchange contracts to manage currency risks
 associated with the company's international business.
 The company also has cross-currency interest rate
 swap agreements in place to manage these
 international financial risks.

R.R. Donnelley The company addresses certain financial exposures
and Sons Inc. through limited use of derivative financial
 instruments. R.R. Donnelley enters into interest-
 rate swaps to manage its interest costs and exposure
 to changes in interest rates.

Viad Viad is self-insured for workers' compensation,
Corporation automobile, product and general liability, and
 property loss claims. The company has also purchased
 various insurance coverages for amounts in excess of
 the self-insured levels.

West West Corporation maintains insurance policies
Corporation covering general liability, casualty and business
 interruption. The company also maintains a property
 insurance policy, as well.
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Publication:Risk & Insurance
Date:Sep 15, 2005
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