To systematically manage the financial and non-financial risks that affect our business operations and ensure our stable growth, we have defined sector-specific responsible departments, established a decision-making system, and engage in continuous monitoring. The Enterprise Risk Management (ERM) system enables us to identify risks in consideration of business areas, market conditions, and stakeholder characteristics, and we set our risk appetite and manage risks across the board accordingly. Furthermore, we manage project-specific investment risks to prevent risks before they ever occur in the initial business and operational phases. The ESG Part serves to identify environmental and social risks and develop preemptive responses to broaden our understanding of and response to risks.
Risk Management Implementation System
Decision-making on investigations and responses according to risk management results is carried out on board level, identifying and analyzing risks that may occur in corporate business activities and from the perspective of ESG through the ESG Committee under the board of directors. In order to flexibly respond to fluctuating risks, each department in various fields is responding to risks in consideration of business, market environment, and stakeholder characteristics in a complex manner.
Risk Management System
Risk Management Activities
Investment Risk Management
We have implemented an ESG risk reviewing process during Investment Deliberation to establish a sustainable supply chain and prevent ESG risks. Additional risks are reviewed by the ESG Part, proceeding with investment after recognizing ESG risks through supplementation and reduction plans. If the board of directors needs to make a decision, decisions are made after final review and approval by the board of directors.
Investment Risk Management Process
Response to Crisis and Major Incidents
Emergency response guidelines have been established to effectively respond to unexpected events and emergencies such as natural disasters. Unexpected events were identified according to the crisis situation, and a disaster response organization composition, role division, and overall response process manual were established for each major building operated by D&D Property Solution (DDPS). Disaster management process is operating and preparations are made to minimize risks in case of an emergency situation related to natural disasters. We will spare no efforts for safe residence of our stakeholders to minimize damage to assets in a situation where sudden extreme weather changes occur frequently due to climate change by operating a pre-monitoring and response system.
Key Details of Emergency Response Guidelines
| Stage | Unexpected events | Work standards | Response directions |
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| Warning |
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ESG Risk Management by Business
We review non-financial risks as well as financial risks for sustainable corporate growth. ESG risks are derived through industry analysis and literature review, carrying out materiality assessment based on financial impact and likelihood of occurrence to identify risk and opportunity factors for each business, systematically responding to and managing risks. Also, the ESG Committee establishes countermeasures to practically manage potential risks at the board level.
Assessment of Real Estate Development and Operation Risks and Opportunities
| Category | Impact on business | Risks | Opportunities | Response directions |
|---|---|---|---|---|
| Policies and Laws |
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| Market |
| ○ | ○ |
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| Reputation |
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| Products and Services |
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Assessment of Eco-friendly Energy Development and Development Risk and Opportunity Factors
| Category | Impact on business | Risks | Opportunities | Response directions |
|---|---|---|---|---|
| Policies and Laws |
| ○ |
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| Market |
| ○ | ○ |
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| Reputation |
| ○ |
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| Products and Services |
| ○ |
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| Energy Resource |
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