SK bioscience has established and operates an Enterprise Risk Management(ERM) system to integrate and manage business risks. The division in charge of each priority management task leads risk mitigation activities, whereas the legal division, as the ERM control tower, identifies the status of risk management and supports management activities.
Risk Management Strategy
<Risk Management Organizational Chart>
We identified 26 issues that require company-wide attention and assessed the importance and current level of management for each task. Then we developed 11 priority management tasks that represent the potential risks that we can manage. In addition, we focus on long-term ERM operations to respond to risks that change dynamically depending on the business’s internal and external environments.
In the first quarter of each year, each division sets key initiatives, detailed plans, and goals for the year based on the previous year’s performance. The progress is then reported every two months to the legal division, which organizes the received performance and plans and directly reports the ERM operation status to the CEO.
Beginning in 2022, each division will assign a working-level personnel to each task to discuss progress and deficiencies in regular and irregular meetings, and to respond more promptly to changes in risk situations.
ERM Operation and Monitoring System
The division in charge of each task identifies and prevents risks inherent in daily operations. We advanced the level of risk management by incorporating the risks that require company-wide management into the ERM priority management tasks.
Our legal division monitors the management status of priority management tasks and performs support activities as necessary. It also gives a warning and mitigates the risks by predicting the possibility of social issues that may have an impact on the company in the future. At the same time, the legal division, along with other divisions, performs relevant ERM priority management tasks and carries out risk management for the tasks in charge.
SK bioscience has established a plan to centralize and specialize risk management by reorganizing the management system of priority management tasks in 2022. Through this, we aim to manage the risks more comprehensively and efficiently by upgrading the ERM.
<Reform Plan of the ERM System>
Risk Management Activities
SK bioscience will establish a risk management framework based on the ISO 31000 Risk Framework and the COSO Framework. We will take an integrated approach to risk management by including identification, measurement, and assessment of the risks for existing priority management tasks and new tasks that may be identified in the future.
<Enterprise Risk Management>
Operation of Business Continuity Plan(BCP)
Emergency Response Management Procedure
SK bioscience has established an emergency response plan to minimize human, material, and environmental damage caused by all accidents such as personal injury, property loss, and environmental accidents in an emergency including a disaster or calamity. Our emergency response plan consists of a series of actions that enable us to respond to crises quickly and systematically. Actions include reporting, organizing an emergency response team, convening, disseminating information about the situation, and carrying out disaster prevention and business recovery activities.
Responsibilities, authorities, and response policies for each division are defined as per the internal emergency response management regulations. Meanwhile, the operation of the Emergency Response Committee is determined by the gravity of the situation. We have created a Business Continuity Plan(BCP) that allows us to follow the unified reporting system in case of an emergency in the workplace. Similarly, we prepared a procedure to utilize our communication channels with affiliates, internal and external stakeholders in order to minimize damage and a response scenario for hypothetical emergencies.
<Organizational Chart for Crisis/Emergency Response Committee>
SK bioscience regularly conducts emergency response drills so that it can immediately respond to risks that may occur in the workplace. We have systematically identified deficiencies and made improvements through training. In 2022, we will continue to make improvements by subdividing emergency response training types and investing in facilities for emergency response, etc.
Establishment of Emergency Response System
An emergency response system is at the heart of SK bioscience’s workplace emergency preparedness. With its emergency action plans and response procedures, SK bioscience minimizes extensive damages to human and material resources, the environment, and corporate image.
We established a disaster prevention system to monitor on-site emergencies 24 hours and prepared response scenarios by predicting emergencies in the SHE aspect. The emergencies and response levels are categorized based on the severity of damage and the possibility of further expansion. We have also defined the roles and responsibilities of divisions in charge of on-site response, support, and emergency contacts.
Under the direction of the SHE Division, joint training between sites is conducted at least once a quarter. We raise our employees’ awareness of the emergency response system through training and developing improvement plans for issues that have been identified.
Altogether, SK bioscience strives to minimize damage through prevention by consistently prioritizing human life and managing all risks in advance rather than afterward.