Page 37 - 2012_Annual Report

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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 risk 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 equivalents, 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.
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: