Risk Management
Risk Management
System
Hanwha Ocean operates a risk management system that continuously identifies, responds to, and monitors risks that may arise throughout corporate activities. For each risk type, operational teams primarily recognize potential risks in their respective tasks, analyze the inherent nature, impact, and likelihood of occurrence of these risks, and establish response measures including elimination, mitigation, and monitoring procedures. They then establish response measures to eliminate or mitigate these risks and perform continuous monitoring procedures. Significant matters are reported to the Board of Directors and its committees through a management council involving the CEO, business unit heads, Chief Production Officer, and department heads. ESG-related items are handled by the ESG Committee or submitted to the Board.
Process
As a result of mapping and prioritizing the items identified in 2024 based on the level of exposed risk, five items were selected for intensive risk management. These include external factors such as global energy industry market conditions, regulations, and macroeconomics, as well as internal operational aspects like workforce management, safety, and technology development. We aim to minimize residual risks by implementing response activities and monitoring for these selected items.
| No. | Focused Risk Management Items | Focused | Risk Description | Potential Impact | Key Response Activities |
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| 1 | Fluctuation Risk of Offshore Plant Demand | Strategy | Uncertainty in orders increases due to fluctuations in offshore plant order volumes and timing caused by global energy demand and geopolitical issues |
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| 2 | Timing Fluctuation Risk of Future Ship Commercialization | Strategy | Possibility of uncertainty or delay in the commercialization timing of ships that meet high efficiency/environmental standards (Example: technology development delays, lack of international agreements, and infrastructure deficiencies) |
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| 3 | Workforce Shortage Risk in Direct/InHouse Production | Operations | Possibility of production schedule delays due to insufficient skilled production personnel, potentially leading to product quality degradation and cost increases |
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| 4 | Safety Accident Risk | Operations | Risk of accidents causing human and material damage |
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| 5 | Fluctuation Risk in Exchange Rate | Financial | Profit/loss exposure to exchange rate fluctuation risks as shipbuilding and offshore products are mostly contracted in foreign currencies ($, €, etc.) |
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