Page 36 - SIGA Annual Report 2013

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Risk Management
At SIGA, business risk is defined as the degree of
exposure associated with the achievement of key
strategic, financial, and organizational and process
objectives. Principal risks and uncertainties that could
affect SIGA’s future business results going forward
are of primary concern.
Risk Management Governance Structure
Although the SIGA Board is ultimately accountable for overseeing risk
management within the Authority as a whole, it has assigned responsibility
to the Audit & Finance Committee to oversee SIGA’s risk assessment and
risk management processes. SIGA senior executives are responsible for
ensuring key business risks are identified, defined and prioritized. 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 strategic planning process.
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.