Risk Management
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.
Integrated Risk Management Process
Integrated Risk Management System and Major Management Issues
Integrated Risk Management System
- Strategic Risks
- Global economic recession /
shrinking domestic demand /
widening
consumption gap /
increasingly diversifying value consumption
- Financial Risks
- Currency risk /
liquidity risk /
interest rate risk /
price risk /
strengthened disclosures
/
increasing raw material prices
- Operational Risks
- Government policies and regulations /
product quality management /
protection of patents and trademarks /
strengthened individual data privacy /
growing importance of external brand image
- Hazardous Risks
- Fire prevention /
health & safety /
natural disasters /
ethics awareness
Compliance Committee
We operate a Compliance Committee to take countermeasures against compliance-related issues across the company. Appointing the CFO of the company as its chairman, we established a more effective management system to assign tasks by risk type to the department heads of the Business Innovation, Public Cooperation, and Jeong-Do Management.