Page 37 - 2009_2010_Annual_Report

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There are a range of factors that may impact
SIGA’s results. Principal risks that could negatively
affect our results and performance include:
Strategic Risks
Risk to Reputation – We recognize damage to reputation as the most severe risk SIGA faces.
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 Risks
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 & 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.