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Risk Management
Our ESG Approach


Committed to greater sustainability of its business sectors, SK discovery is increasing corporate value by combining non-financial values with economic profitability. We believe that creating business models with an ESG perspective not only perform best in today’s rapidly changing business environment but also provide distinct competitive advantages.

We work to create stable and sustained management performance even if financial and non-financial risks arise. We prepare and implement active measures to minimize financial risks so our respective management teams can quickly respond, if needed. Our Board of Directors and management teams monitor these risks as follows:

Risk Management Methodology

Risk Management Areas

Risk TypeRisk Factor
Financial risksMarket risk (such as interest rates, stock prices, exchange rates and commodity prices) Credit risk Liquidity risk
Environmental risksOil prices, economic trends, both domestic and international Policies and regulations, industry trends Legal/international regulations
Operational risksEmployees, processes and organizational culture
Reputation risksNegative or deteriorating public opinion among external stakeholders, including customers and shareholders
Non-financial risksSocial and environmental impact of business activities

Owing to differing environments in business sectors, risks in each sector may vary. We strictly comply with regulations by identifying, analyzing and monitoring risks while making sure to preserve corporate value and reduce those risks. At the same time, we are focused on risk management to drive future growth value.

Risk Management Framework

To better respond to changes in the business environment, we continuously monitor potential risks. That allows us to review financial and non-financial risks across senior management investments. We also disclose key ESG activities on our website to communicate transparently with our stakeholders.