At Coway, we proactively manage risks which may have a material impact on our business. To this end, we have organized the Risk Management Committee and each team takes response measures in accordance with the risk management policy approved by the committee. They coordinate with each other to identify, assess and prevent the risk and continue to monitor the situation even after the risk has been dealt with. Since 2016, we have operated the Issue Council to discuss ways to mitigate risks and come up with effective solutions at a corporate-wide level.
Each business division at Coway takes a proactive approach in dealing with risks in our business activities. In addition to financial risks (e.g. market, credit, liquidity), we also ensure that non-financial risks (e.g. compliance, policy) are actively managed.
At Coway, we identify and monitor emerging risks on a regular basis as part of our sustainability management.
|Information Protection vs. Utilization||Crisis of population cliff|
|Risk Impacts||Recently, there are increasing risks in security due to new products and services developed based on IoT (Internet of Things) and Big Data. Since we collect personal information of our customers due to the nature of the rental service, it is important for us to safeguard customer information and manage risks involving security, privacy and trust. In particular, we need to strengthen our date security system as we collect and utilize information about our customers in the course of sales activities and providing services.||South Korea faces a population cliff from 2018, and the South Korean population of 50 million people is expected to peak at 52 million by 2030. At the same time, there is already a warning that it will face consumption cliffs. This consumption cliff is expected to stagnate the domestic market and seriously affect its domestic sales. In order to solve these risks, it is necessary to develop specialized products and services by responding to signals such as low birth rate and increase of one person household.|