Sustainability

Risk Management

In such times when there are constant crises such as increased national protectionism, low growth in the steel industry, and expanding macroeconomic risks, POSCO is making efforts at the group level to preemptively detect and respond to such risks. This will enable POSCO to prevent risks through timely responsiveness to the rapidly changing business environment and secure the foundation for sustainable growth by maintaining an amicable relationship with its stakeholders.

Risk management system and governance

POSCO's risk management system is designed for each relevant department to manage different matters and issues. POSCO categorizes risks into business risks, non-business risks, and disasters/crises. Business risks are managed by the four offices of the Value Management Center. More specifically, the Business Strategy Office handles strategic and investment risks, the Finance Office handles financial risks such as exchange rates or funds, the Domestic Business Management Office handles major affiliate risks in Korea, and the Overseas Business Management Office handles risks of global steel corporations overseas. External risks such as steel business, financial market, materials market, and competitor strategies are constantly monitored by the POSCO Research Institute. The results are regularly reported to POSCO or distributed throughout the group through the Global Information Hub (GIH). Meanwhile, non-business risks such as the company's ethics, law abidingness, and reputation are managed by the Righteous Management Office through the risk self-prevention system. As for disasters and crises, the safety and disaster prevention department at each steel mill runs a safe and accident-free business site.

References about Risk Management