- LG H&H Co., Ltd. CEO :
- Lee Jung Ae
- Business License Registration No. :
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It is with our CEO’s firm commitment to making LG H&H more resistant to external shocks that we operate an integrated company-wide risk management system. Business segment-specific risks are monitored regularly and non-financial risks are diagnosed by internal experts to be addressed more appropriately. In addition, operational and hazardous risks in the environmental and social sectors are identified by respective functional units and are effectively managed through an organically aligned reporting system.
(Company-wide integrated core risk management)
* Subcommittees: 12 committees in total, including Environment & Safety, Quality & Service, Information Security, Production, Beverage Production, Purchasing, Logistics, Compliance, and Finance, to discuss issues related to their respective subcommittees. They define crises and major risks for each division, establish a response system in the event of a crisis, and conduct risk improvement activities.
After consulting with each subcommittee, we defined core crises by major categories, defined accident grades, and established a dissemination/communication system based on accident/issue levels(grades). Through the crisis management information system, we simultaneously disseminate information to management and related departments in the event of an accident and respond quickly to prevent it from escalating into a major crisis. In the event of a company-wide crisis, the ‘Company-wide Crisis Management Committee’ is converted to the ‘Emergency Response Committee’ to review and decide on agenda items for immediate and efficient response.
LG H&H organized the Company-wide Crisis Management Committee to improve crisis response execution and strengthen risk prevention activities from
an integrated company-wide perspective and operates it every other month.
The CRO chairs the Company-wide Crisis Management Committee for efficient decision-making, and key executives are organized as standing members and subcommittee chairs.
The Crisis Management Committee is the highest decision-making body in the company and discusses and resolves the overall operation of the crisis management system, including determining the company-wide crisis management policy and checking the crisis response system by division. It also selects priority risks from a company-wide perspective, discusses improvement measures for high risks identified by each subcommittee, analyzes risk phenomena, and checks mitigation activities by ordering onsite inspections or short-term task operations as needed.
* Scope of attendance adjusted according to agenda
|Climate and Environmental Risks
Risks arising from natural disasters and changes in weather patterns due to climate change
Risks arising from policies and regulations
Risk of increased treatment costs due to expanded regulations on the cross-border movement and treatment of hazardous waste(e.g., non-recyclable plastics)
Declared 2050 carbon neutrality to combat climate change
Continuously monitoring the applicability of greenhouse gas regulations to LG H&H
Enhancing LG H&H’s natural disaster risk management system, including building manuals and scenarios
Continuously monitoring regulatory trends and prospects in the regions where LG H&H sells its products
Continuously tracking domestic and international trends and regulations
Green Management Part
|Human Rights Risks
Risk of damage to corporate reputation due to workplace harassment, discrimination, etc., violating human dignity and values guaranteed by law or recognized internationally.
Identifying and responding to potential human rights risks through the implementation of human rights impact assessments
Operating the ‘Sexual Harassment/Workplace Harassment Consultation Center’ to resolve human rights violations such as workplace harassment and sexual harassment.
Conducting workplace harassment and sexual harassment prevention training for all employees
|Global Economic and Supply Chain Risks
Risks arising from rapid changes in political, economic, social, etc. conditions
Risk of supply chain management crisis due to global regulations
Enhancing due diligence monitoring to identify global trends and manage overseas supply chains
Strengthening communication within the organization and minimizing unnecessary reporting
Developing new markets, innovative new products, and marketing activities
Business divisions and overseas subsidiaries
Global SCM Center
|External Environmental Risks
Business operations disrupted due to unexpected environmental changes such as epidemics, wars, terrorism, and earthquakes, including the procurement of raw materials and the closure of business sites.
Establishing a “Crisis Response for Overseas Subsidiaries” manual and establishing a companywide crisis management system
Risks arising from a company losing the trust of consumers, such as poor management, social disruption, major lawsuits, and misleading information.
Expanding active communication utilizing internal and external channels
Establishing a company-wide crisis management public relations manual and enhancing communication channels with external stakeholders
Public Relations Division
Risks related to environment and safety arising from business operations
Investing in forklift human body detection systems to prevent forklift accidents that could lead to serious accidents
Conducting inspection activities to prevent workplace fires and safety accidents
Expanding an integrated health promotion system
Significant risks arising from quality management, such as harmful substances or inadequate content of active ingredients in products.
Increased treatment costs due to expanded regulations on cross-border movement and treatment of hazardous wastes
Improving change management processes at suppliers
Operating the Reassurance Quality Management(RQM) system, an integrated quality management system to meet national quality standards.
Quality Management Team
Customer Service Center
|Information Protection/IT Risks
Risks of theft, loss, or leakage of personal information handled within the company, hacking of information assets, virus and malware infections, and other breaches or disasters on key systems.
Monitoring domestic and international information protection policies at all times
Creating and operating a ‘Disaster Recovery Guide’ manual
Establishing a centralized documentation system for research institutes to block sources of core information leakage
Expanding the integrated security management system for subsidiaries
Information Security Center
|Intellectual Property Risks
Risks arising from infringement of our trademark and patent rights, etc.
Protecting patent and trademark rights and preemption
Monitoring exaggerated and false advertising
Intellectual Property Division
Risks arising from the management of protective measures such as domestic and international customer information management regulations and remedies, complaint counseling, and compensation regulations
Risks of decreased demand and behavioral changes due to customers’ preference for low-carbon products
Establishing an integrated management system and strengthening monitoring of domestic and international customer claims
Introducing self-service using answer bots and applying AI technology for customer counseling
Raising the awareness of LG H&H as an eco-friendly company by expanding the development of green products
Monitoring regulatory trends and expanding internal control systems
Consumer Safety Center
|Risks of legal violations
Risks arising from violations of major laws and regulations such as fair trade, personal information protection, product quality, human resources/labor, environment/safety, intellectual property, etc.
Identifying and preparing for key risks
Sending compliance newsletters to all employees to ensure compliance with laws and regulations
External Cooperation Team
|Accounting Fraud Risks
Risk of embezzlement or other accounting irregularities by internal employees
Expanding the consolidated internal accounting management system
Monitoring financial statements and financial ratios of small subsidiaries
Conducting on-site inspections of overseas subsidiaries
Funding risks arising from temporary shortage of liquid funds
Future market instability and sudden volatility, such as sudden exchange rate fluctuations, interest rate fluctuations, capital risk, credit risk, tax risk, etc. Market instability and sharp volatility
Monitoring macroeconomic conditions, including short-, medium-, and long-term funding plans in foreign currencies
Long-term management of financial liabilities and financial assets through analysis and review of cash outflow budgets and actual cash outflows
Tax risks in business
Enhancing expertise by hiring tax experts
Establishing a process to review taxes before making major decisions
Tax Trade Division