Risky Business
May 2008

A gaming company’s regulatory compliance program is a key component of how the company manages risk attendant to criminal and regulatory violations by its officers, directors and employees. Before designing the compliance program, companies often err by not first determining the risks, and their likelihood and potential impact, so as to design the most effective compliance program.

Gaming enterprises are subject to a number of risks, ranging from criminal activity and civil regulatory violations to undesirable conduct. The management team for each gaming company must determine the types of risks present and how much risk is acceptable. After that, management should regularly assess the likelihood and potential impact in an effort to prioritize each type of risk. Risk exposure should be evaluated using quantitative and qualitative measures. Through gaming risk assessment, management can prepare, and continually maintain, a well-designed and effective compliance system to reduce risks to acceptable levels.

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