IS Dongseo (010780) said on the 13th that it has established an enterprise risk management (ERM) system to cope with growing uncertainty in its business environment.
Over the past six months, the company reviewed work processes across all departments, analyzed potential risk factors and compiled a risk register for each unit. The move is intended to assess risks that individual departments had managed separately under a common standard and bring them under integrated oversight.
The new system sorts risks that may arise in the course of business into four areas: financial reporting, operations, regulatory compliance and strategy. It evaluates the likelihood and potential impact of each risk and separately calculates the residual risk that remains after existing controls are applied.
The company also specified which department is responsible for each risk, how often it is reviewed and how it should be addressed. It set up inspection procedures and standards for managing supporting documentation to verify that key control activities are properly applied in actual operations. Items assessed as high-risk will be improved first and subject to intensive monitoring.
IS Dongseo plans to compile risk management results from each department, share major risk factors with management and reflect them in decision-making. It will also regularly review risks stemming from new business ventures, shifts in market conditions and revisions to laws and regulations, and refine the framework accordingly.
"We analyzed the operations and potential risks of each department in detail and built a company-wide management foundation," an IS Dongseo official said. "By identifying and managing risks in advance rather than responding after the fact, we will create a stable business environment."