SIGA_Annual_Report_2015 - page 52

At SIGA, business risk is defined as the degree of exposure associated
with the achievement of key strategic, financial, organizational and
process objectives. Principal risks and uncertainties that could affect
SIGA’s future business results going forward are of primary concern.
Although the SIGA Board is ultimately accountable for overseeing risk management within SIGA 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.
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