SK D&D systematically manages both financial and non-financial risks that may arise throughout its corporate operations to achieve sustainable growth. We have established departmental oversight and decision-making structures to continuously monitor these risks. Notably, non-financial risks related to ESG management, such as environmental and social issues, are reviewed through the ESG Committee. We are actively striving to strategically manage and respond to risks stemming from changes in our internal and external environments, including business sectors, market conditions, and stakeholders.

The Board of Directors makes decisions on investigations and response strategies based on risk management outcomes and through the ESG Committee under the Board, identifies and analyzes risks arising from corporate operations. Each operational department identifies and mitigates actual and potential risks linked to their functions for strategic risk management and response planning, regularly reporting to the Board and the relevant Committees.

The Legal Affairs Part, serving as the compliance oversight and support organization, manages legal risks associated with corporate projects in investment, development, and execution, reporting major group-wide risks and response strategies to the Board as the Board's secretariat.

The Planning Management Part, responsible for corporate management strategy planning and implementation, has established an Enterprise Risk Management (ERM) system to manage risks in each project and business execution process based on collaborative workflows with project departments. Additionally, it conducts annual surveys on fair transaction practices with business partners including subcontracting, to manage practical and potential risks for mutual growth.

The Internal Control Part manages financial and non-financial risks within the internal accounting system based on consolidated standards, while also addressing corporate ethics and corruption-related risks through various initiatives to raise employee awareness. As a support organization for the Audit Committee, it performs practical audit tasks, and periodically reports the annual audit plans and results to the Committee.

The Safety, Health, and Environment (SHE) Part, operating under the Chief Safety Officer (CSO), manages related risks according to project management and emergency response guidelines. The SHE Part prepares annual safety and health plans, and reports outcomes such as site inspection results and progress on implementing improvements initiatives to the Board.

The ESG Part annually identifies ESG risks and best practices, collaborating with relevant departments to implement improvement tasks for each risk. In addition, it regularly reports the performance of ESG improvement plans, including the progress and results for the respective year, to the ESG Committee.