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36

RISK MANAGEMENT GOVERNANCE

STRUCTURE

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. Risks that could negatively affect our results and

performance include:

STRATEGIC RISK

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.

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 anticipated 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.

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

are of primary concern.

RISK MANAGEMENT