SK D&D systematically manages both financial and non-financial risks across its operations to ensure sustainable growth. Robust oversight and decision-making frameworks are in place at the departmental level to facilitate continuous risk monitoring. Non-financial risks, particularly those associated with environmental and social factors, are regularly reviewed by the ESG Committee. In addition, the company adopts a proactive and strategic approach to addressing risks arising from changes in business domains, market dynamics, and stakeholder expectations.

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/SCM part, serving as the compliance officer support organization and the company-wide compliance lead, manages legal risks related to investments, developments, and ongoing projects across the enterprise. In this role as the Secretariat of the Board of Directors, it reports on major company-wide risks and corresponding countermeasures to the Board. Additionally, to promote mutual growth with business partners, it conducts annual fair trade compliance surveys, including subcontracting practices, and manages actual and potential risks associated with business partners.

The performance innovation part, responsible for company-wide management strategy and operations, has established an Enterprise Risk Management (ERM) system. Based on close collaboration with project execution departments, it manages risks arising throughout the project and business implementation processes.

The internal control part, beyond overseeing financial and non-financial risks arising from the consolidated internal accounting system and performing audit functions, conducts activities to raise ethical awareness among employees, thereby managing corporate ethics and corruption-related risks. As a support organization to the Audit Committee, it carries out comprehensive audit-related tasks and regularly reports annual audit plans and results to the committee.

The Safety, Health, and Environment (SHE) part, a dedicated company-wide safety and health organization under the Chief Sustainability Officer (CSO), manage risks related to safety, health and environment according to guidelines such as the Project Management Directive and Emergency Response Protocol. It establishes an annual safety and health plan and reports the results of site inspections and progress on corrective actions to the Board of Directors.

The ESG part identifies ESG-related risks within the annual investment process, collaborates with relevant departments on each risk area, and implements improvement measures. It regularly reports on the progress of ESG improvement initiatives and the annual action plan to the ESG Committee.