Risk Management

SDGs:

  • GOOD HEALTH AND WELL-BEING

    3

  • DECENT WORK AND ECONOMIC GROWTH

    8

  • PARTNERSHIPS FOR THE GOALS

    17

SKM established five risk management visions and a Department of Security and Surveillance. We manage and identify risks such as public safety, information security, personnel safety, food safety, construction safety, occupational safety, environmental safety, and ESG risks in four steps: Identify, Assess, Improve, and Track.

Three Lines of Defense in Risk Management

Step.1
First Line of Defense
Frontline

Department stores implement risk control practices on site.

Step.2
Second Line of Defense
Security and Surveillance Meetings
Chief Security Officer serves as the chairperson and convenes all security heads from HQ to review and formulate SKM's (security-related) risk control policies and monitor/evaluate effectiveness of risk control.
Step.3
Third Line of Defense
 
Audit

Audit Department audits the integrity of SKM's risk management and control policies and practices.

Four Steps in Risk Management

SKM Vision for Risk Management

Enhanced Prevention Awareness

Enhance prevention awareness in SKM employees to be always alert regarding safety issues involving customers, themselves, and communities to prevent incidents beforehand

Improved Operation System

Establish a reliable, robust, long-term, and evolving safety system to regulate enforcement standards in workplace safety and accumulate domestic and international experiences to facilitate professionalism.

Innovative Security Measures

Innovate SKM's safety measures, leverage technological developments, strengthen efficacy of tasks relating to safety, and embrace trends in changing business landscapes

Increased Sense of Safety

Increase sense of safety in customers, which can be converted into trust towards the SKM brand and further increase customer willingness to spend at SKM.

Promoted Value of Safeguard

Strengthen connection of external resources at all levels to maintain a safe workplace together as part of our infrastructure to improve operational performance.

Risk identification revealed that short-term risks are mainly derived from changes to domestic laws and policies, with transition risks such as GHG and renewable energy regulations having higher levels of impact. Long-term risks are mainly derived from physical risks brought on by climate change, with rising sea levels and rising temperatures having higher levels of impact.

In addition, as SKM operations engage with several value chains, we also assessed the potential climate change risks confronting the upstream, midstream, and downstream of our value chain.