Page 35 - 2008_2009_Annual_Report

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Business Risks
There are a range of factors that may impact SIGA’s results.
Principal risks that could negatively affect our results and performance include:
Risk to Reputation – We recognize damage to reputation as the most severe risk
facing SIGA. Our efforts to mitigate reputation risks include continual building of
goodwill by effective communication with stakeholders, commitment to sustainability,
transparency, leading-edge corporate governance and best practices.
Economic slowdown – Changes in the economy impact the amount of disposable
income people have to spend on entertainment, resulting in reduced gaming
revenues. SIGA monitors the external environment and the individual performance
of each property.
Financial Risk
Liquidity Risk – The risks that SIGA is unable to meet its financial commitments
as they become due or can only do so at excessive costs. SIGA manages its cash
resources based on financial forecast and anticipates cash flows.
Theft of Assets – We recognize the extreme importance of maintaining strong
controls over the safeguarding of cash and cash equivalent, as specific to the
gaming industry. SIGA manages these risks through the design of internal controls
to mitigate such occurrences.
Organizational And Process Risks
Risk with loss of key personnel – SIGA recognizes the impact to the organization
if there was a loss of key personnel. In order to mitigate the impact of such a loss,
executive and senior management succession plans are in place.
Information Risks – SIGA recognizes information for decision making requires
accurate, complete, and timely reporting of financial and operational performance.
SIGA manages these risks through continual evaluation of the internal controls over
financial reporting, for new and existing systems.