Page 36 - SIGA Annual Report 2014

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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:
Risk 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.
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.
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.
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.