Sustainability Management Strategy

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

대내외 경영 환경 변화 모니터링과 사업별, 부서별 상시 개선과제 도출 한 다음 리스크 이슈 구명을 진행하며 전사 통합 리스크 관리-전략리스크, 위럼리스크와 기능별, 부서별 리스크 자체 관리-재무리스크, 운영리스크를 진행한 뒤 예방교육 매뉴얼 커뮤니케이션 다음 성과공유(CSR 보고서)로 진행됩니다.

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.

Chairman CFO, Secretariat Compliance Department,Head of Public Relations Division, Head of Jeong-DO Mgmt Division, CHO, Head of Legal Affairs Division, Heads of each Planning & Mgmt Division