Page 38 - 2007_2008_Annual_Report

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K E Y R I S K S
Risk Management Process
At SIGA, business risk is defined as the degree of exposure associated with the achievement of
key strategic and business objectives in relation to the effectiveness and efficiency of operations,
the reliability of financial reporting, compliance with laws and regulations, and the safeguarding
of assets consistent with our First Nation values and SIGA’s guiding principles.
SIGA utilizes a structured approach to managing uncertainty related to its business activities.
Key business risks are identified, defined and prioritized, and executive risk owners are engaged
and charged with risk mitigation within limits established by the SIGA Board of Directors. This
data is compiled in a corporate risk profile that is reported to the Audit & Finance Committee
on a quarterly basis. Results of the quarterly risk and control assessment are incorporated into
the development strategic planning processes.
The following sections summarize the principal risks and uncertainties that could affect SIGA’s
future business results going forward, and associated risk mitigation activities:
As the Saskatchewan Indian Gaming Authority moves forward, it will conduct periodical
environmental scans of its external environment including that of the regulator, economic,
governmental, competitors, societal and environmental.
RISK CLASSIFICATION
RISK EVENT
RISK MITIGATION STRATEGIES
(Control Activities)
• SIGA Information Technology Strategic plan
• Fixed Price Contracts
• Project Progress Reports
• Development of Project Management
processes as per Project Management Policy
• Executive Succession Plan, Emergency
Loss of CEO Plan
• Executive & Senior Management
Development Plans
• Casino HR Plans
• On-going public opinion polling
• Execute Communications Strategy
• Administrative Controls
• Accounting Controls
• Business Process Management
• Financial Reporting Policy
• Casino Operating Agreement Requirements
• Quarterly Reviews on status of response
plan with A&F Committee
• Input of lessons learned from Quarterly
Reviews into business planning process
• Administrative Controls
• Automated COI process
• Audits
Alignment of Business
Requirements and
Information Technology
Cost overruns
(expansion/project)
Loss of key personnel
Adverse public opinion
Material misrepresentation
and/or incomplete disclosure
on financial/operational
performance
Lack of or inadequate
response to audit
recommendations
(Auditors – Provincial,
SLGA, Internal)
Conflict of interest
Operational
Operational
Operational
Strategic
Reporting
Compliance
Compliance