The basic policy and control system for risk management are set forth in the Action Plan for Compliance and Risk Management (revised on December 10, 2021), and we strive to prevent risks (including compliance issues) that could hinder the business activities of the Samty Group and cause significant losses to the Company, and to respond promptly and appropriately when they occur, in order to ensure personnel safety, minimize economic losses, facilitate business operations, and prevent damage to the Company’s image. We are also working to prevent risks from materializing through appropriate management of various risks surrounding our business, including compliance-related risks, risks associated with daily business activities, and information risks.
The Group has established the Risk Management Regulations as the basis of risk management and strives to prevent the materialization of risks before they occur. For operating the risk management system under normal circumstances, a director responsible for the Legal Department shall be appointed as the director in charge of risk management, and the Legal Department shall serve as the department in charge of comprehensive risk management, with the cooperation of the Internal Audit Department and other related departments. The Legal Department checks and evaluates the status of risk management and implements necessary measures, etc., based on the Action Plan for Compliance and Risk Management, an action plan for risk management.
If an emergency situation arises, the Emergency Response Department, headed by the Representative Director and President, shall respond by promptly assessing the state of damage, taking prompt and appropriate action, and quickly establishing a system to minimize damage, in accordance with the Emergency Response Regulations and the Detailed Regulations on Measures for Severe Natural Disasters, etc., which are separate regulations stipulating measures to be taken in the event of an emergency situation.
| Category of Emergency Situations | Responsible Departments | ||
|---|---|---|---|
| Level A | Level B | ||
| Natural Disasters | Earthquakes, windstorms, floods, and other disasters | Emergency Response Department |
Human Resources & General Affairs Group, Human Resources & General Affairs Department |
| Accident | Serious accidents such as office explosion, fire, building collapse, etc. | Human Resources & General Affairs Group, Human Resources & General Affairs Department | |
| Serious accidents attributable to the Company’s real estate properties (including environmental issues and complaints from neighborhoods) | Relevant departments | ||
| Serious personal injury involving officers and employees | Human Resources & General Affairs Group, Human Resources & General Affairs Department | ||
| Crime | Illegal external attacks such as corporate bombing, arson, kidnapping, extortion, etc., as well as receipt of threatening letters | Legal Department | |
| On-site investigations by government and municipal offices for the purpose of discovering violations of laws and ordinances of the Company and their detection, etc. | Legal Department / Internal Audit Department | ||
| Misconduct by officers and employees, including breach of trust, embezzlement, and insider trading | Legal Department / Internal Audit Department | ||
| Others | Unlawful purchase of the Company’s shares | Legal Department / Corporate Planning Department | |
| Litigation and disputes of all types | Legal Department / Relevant departments | ||
| Situations arising from emergencies of business partners, such as bankruptcy of important business partners | Relevant departments | ||
| Non-performing loans and bad debts | Relevant departments | ||
| Monetary accidents, and burning, theft or loss of securities, etc. | Accounting Department / Finance Department | ||
| Discrimination issues, human rights issues, sexual harassment, etc. | Human Resources & General Affairs Group, Human Resources & General Affairs Department | ||
| Other business emergencies equivalent to the above | Relevant departments | ||
In response to the spread of COVID-19 infections, the Group established a countermeasures committee chaired by the Representative Director and President to ensure the health and safety of employees, their families, and business partners as a top priority, and has formulated a basic policy for infection prevention measures in accordance with government and municipal policies and made every effort to instruct and support all group sites in their countermeasures. The Group has put in place measures and systems that will enable it to continue operations with a low attendance rate even if a social demand to reduce personnel contact is made in the future, based on the issuance of a declaration of a state of emergency, etc.
