Coway Sustainability

Risk Management System

Woongjin Coway proactively manages any potential risks in management activities. For this goal, we operate the Risk Management Committee; in case of any risk, each business department conducts response activities based on the risk management policy approved by the committee. Business departments closely cooperate with each other to identify, evaluate and prevent risks and carry out continuous monitoring after a risk situation is addressed. In addition, we have operated the Issue Council from 2016 to identify a direction and method for dealing with potential and continuously recurring risk situations.

Organization

Financial and Non-Financial Risk Management

Each business division of Woongjin Coway proactively manages major risks related to management activities. In particular, we actively manage not only financial risks such as market, credit and liquidity risks but also non-financial risks such as compliance and policy and strive to ensure stable management activities.

Risk Response Process

Business Case

Management of Emerging Risks

For sustainability management, Woongjin Coway proactively identifies emerging risk factors and regularly monitors them.

(Risk Factors) Emerging Risk Factors	Information Protection and Cyber Attack	Waste Management
(Risk Impacts) Risk Impacts	As Woongjin Coway has the characteristics of a rental business, it is a crucial factor in management to collect and protect customer personal information safely. In particular, collecting and utilizing information at the point of customer contact for sales and services are significantly important. In addition, with the recent automation and advancement of factories, one of the most significant risks is suspended production and financial loss due to cyber-attack.	As waste treatment and disposal are emerging as severe social issues, various countries including the Korean government have established systems for public waste management. In particular, it is strictly prohibited to use microplastics. E-waste from electronic products such as home appliances is also a severe international social issue. Woongjin Coway has started to carry out activities related to e-waste in the entire process of production, service and collection and reduced the percentage of hazardous waste by developing alternative materials and enhancing the recycling rate.
Risk Response Page (Mitigation Actions)	Reinforcing information protection system and activities Strengthening personal information protection in the overall business sectors Link	Recycling plastic Collecting and recycling refrigerants Operating refurbished system Link