In order to ensure that their employees and operations systems continue to maintain optimal service to customers, lottery operators must be ready to handle any issues that could occur at retail sales points and with online apps and platforms. From natural disasters, global viruses or cyber security data breaches, they should be ready to quickly respond to keep their businesses safe and running.
Risk management strategies enable gaming companies to identify potential risks and establish an action plan to prevent such occurrences. As part of its services in 2021, the World Lottery Association (WLA) Security and Risk Management Committee created the Lottery Risk Register, a living document that offers risk-related information specific to the lottery and gaming sector. By gathering feedback from the WLA community, it aims to provide a comprehensive documentation for establishing, implementing, or monitoring risk management processes.
Four key areas have been identified where risk can occur in business operations, including: a) financial, b) legal and compliance, c) operations, and d) strategic. The Register drills down to six types of operational risks in the lottery and gaming sector. These cover business disruption and system failure; clients, products and business practices; damage to physical assets; execution, delivery and process management; external and internal fraud.
More than 50 risks have been identified and described. The Register also describes the risk event or specific action determining a potential risk for a company, such as failure of physical draw equipment or a fraudulent claim of undue winnings.
Luca Esposito, Executive Director, WLA, indicated: “It’s very important that all our members take advantage of our Risk Register to share their experiences and learn from others so that they can minimize or avoid risks to their business operations.”
WLA members can download the most recent Lottery Risk Register by logging in to the WLA website. The file contains the Lottery Risk Universe map and the excel table of risks. To contribute with this Register, companies can log in to the WLA Wiki and leave their comments.