RISK MANAGEMENT GOVERNANCE
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
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 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
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
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.