Governance
Risk Management
Risk Management
Risk Management Strategy
Risk Management Division
SK bioscience operates the Enterprise Risk Management(ERM) system to manage financial and nonfinancial risks that may arise from business activities in an integrated manner. The primary goal of the ERM is to minimize the likelihood of risks materializing and negatively impacting the business. To achieve this, risk factors related to our business are selected as priority management tasks and managed intensively. The general manager of the ERM is the Head of the Office of Legal Affairs, and the divisions in charge of each priority management task lead risk mitigation activities As the control tower of the ERM, the Office of Legal Affairs identifies the status of risk management, supports management activities, and regularly reports operational results to the top management. In addition, non-financial risks related to ESG are reported to the Board through the ESG Committee. Moreover, we prioritize a long-term perspective in ERM operations to effectively respond to risks that dynamically change based on the internal and external business environment
Risk Management Organizational Chart
-
CEO
-
The Head of the Office of Legal Affairs
-
-
Protection of Trade Secrets
- Information security
- Legal affairs
-
Compliance with Laws and Regulations
- R&D/production quality control
- Legal affairs
-
Strengthening Safety
- Clinical trials
- Pharmacovigilance
-
Securing IP and Human Resources
- Intellectual property rights
- Recruitment
-
Other ESG-related non-financial risks
-
The Board of Directors
-
ESG Committee
-
ESG Committee Secretariat
Risk Report Process
-
Each Division
- Key implementations for the year, detailed implementation plans, and goal setting
- Report on implementation performances and significant issues
-
The Office of Legal Affairs
- Compile and summarize the implementation performances and plans of each division to report to the CEO
-
CEO
ERM Operation and Monitoring System
SK bioscience operates the ERM system so that divisions in charge of each risk can take preventive measures if they identify risks inherent in their work. Risks that require company-wide management are incorporated into ERM priority management tasks, thereby enhancing the overall level of risk management. The Office of Legal Affairs monitors the management status of priority management tasks and conducts support activities as needed. By observing the possible occurrence of social issues that may negatively affect the company in the future, it warns of risks and takes proactive measures. Simultaneously, the division executes some of the ERM priority management tasks and performs risk management for the assigned tasks. In 2022, we strengthened our ERM operations by identifying and incorporating risks arising from changes in the business environment, various social events, and the enactment and revision of business-related regulations as new management tasks. Going forward, we intend to assign dedicated personnel to handle compliance-related risks in areas such as fair trade, trade secret protection, personal information protection, occupational safety, and R&D management. This approach will enable us to carry out ERM tasks more professionally and ensure comprehensive company-wide risk management.
Reform Plan of the ERM System
-
Centralization
- Among the 11 priority management tasks of our ERM, five tasks that the division in charge can manage in daily operations are transferred to each division.
- Six tasks that require company-wide management are reorganized to enable organic collaboration between divisions in charge and consolidated based on similarities.
- In the case of social events that may have an impact on the company, we focus our capabilities on providing timely risk warnings and identifying new management tasks.
-
Specialization
- In the case of the tasks that require companywide response, each division designates managing personnel to enhance expertise and responsibility in ERM operation.
- By holding regular meetings between the managers of each task to share the overall progress, we employ a company-wide response in a timely manner when needed.
Risk Management Activities
SK bioscience has established a risk management framework based on the Risk Framework of ISO 31000 and the COSO framework, which are international standard certifications. We take an integrated approach to risk management by encompassing identification, measurement, and assessment of the risks for existing priority management tasks and new tasks that may be identified in the future. Additionally, we conduct systematic risk management activities by continuously monitoring potential emerging risks stemming from changes in the internal and external business environment and establishing proactive response measures to them.
Operation of Business Continuity Planning
Emergency Response Plan
SK bioscience has established an emergency response plan to minimize human, material, and environmental losses in the event of an unavoidable accident such as a natural disaster or catastrophe. In case of an accident, we implement a staged systematic response plan consisting of a series of actions that enable us to respond to crises quickly and systematically. These actions include reporting, organizing and convening an emergency response team, and disseminating information about the situation. In accordance with the internal emergency response management regulations, responsibilities, authorities, and response plans for each division are established. The decision to activate the emergency response committee is made based on the severity of the situation. We have also designed a Business Continuity Plan(BCP) to respond to emergencies and increase our business recovery capacity. We operate situation-specific response scenarios for a possible emergency situation and respond according to unified instructions and reports to minimize the damage caused by disruption of business activities. Additionally, we maintain continuous communication with our stakeholders through both internal and external channels, ensuring that the impact on them is minimized. In fiscal year 2022, we conducted a total of two emergency response drills on a semi-annual basis. As part of our efforts to improve our response capabilities during emergencies, we plan to increase the frequency to once a quarter in fiscal year 2023.
Establishment of Emergency Response System
SK bioscience strives to minimize damages by proactively managing all risk factors that arise in the business sites. Accordingly, we have established an emergency response system and emergency response procedures to promptly respond to emergencies in the workplace. We set up 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 escalation. We have also defined the roles and responsibilities of divisions in charge of on-site response, support, and emergency contacts. Meanwhile, under the leadership of the SHE Team, we conduct joint drills at least once every quarter to enhance our crisis response capabilities, and we also establish improvement plans for problems identified through the drills.
Organizational Chart for Crisis/Emergency Response Committee
-
Crisis Response Committee
-
Secretary
-
Andong L HOUSE Emergency Operations Center
-
HQ Emergency Response Team
Emergency Response Policy: Operational Principles
-
1. Protection of Human Life
-
2. Protection of the Environment
-
3. Protection of Company Assets and Image
Types of Emergency
-
Emergency
- Personal injury accident
- Fire and explosion accident
- Oil leakage accident: land/sea
- Leakage accident: toxic/flammable gas
-
Quasi-emergency
- Natural disasters such as typhoons, heavy rains, earthquakes, and tsunamis
- Risk of an accident occurring in a nearby area that may spread to the business site
- Blackout