2016 Integrated Annual Report

Material issues and risk management

We consider material issues as matters that could substantively influence the assessment of providers of capital and other stakeholders with regard to Sun International’s ability to create value over the short, medium and long term. In order to achieve our strategic objectives and manage our risks, these material issues are continuously monitored by Sun International and the board as its governing body.

Managing our way through tough economic conditions Our business depends on consumers spending disposable income at our various properties. The current tough global economic environment continues to place strain on consumers, which in turn negatively impacts our profitability. The challenging political and social environment in South Africa is of significant concern to our South African operations.
Exploring and delivering on growth opportunities With the tough global economic environment, it is critical for us to look for opportunities in markets with higher growth potential, and to be innovative when providing products and services.
Managing our complex regulatory environment We operate in a highly regulated and complex environment, particularly in South Africa, and it is critical for us to focus on compliance, to ensure we maintain our licence to operate and embrace the transformation agenda of the South African economy. We have an experienced team in Latam that deals with the regulatory environment in these foreign jurisdictions.
Remaining relevant in the societies within which we operate As most of our casino licences provide for exclusivity it is therefore important for us to be mindful of the various communities within which we operate to continuously provide services and products that remain relevant.
Managing relations with our key stakeholders Proactive stakeholder engagement is imperative to ensure that we understand stakeholders’ needs in order to achieve our strategic objectives.