Search within page
0/0
Strengthening Risk Management
Risk Management Framework
HanmiGlobal operates an Enterprise Risk Management (ERM) system to proactively identify, prevent, and respond to internal and external risks in pursuit of sustainable business operations.
The company enhances its overall risk response capabilities through a management process that includes monitoring key changes in the business environment, risk identification, mitigation planning, implementation, monitoring, and continuous improvement.
In addition, a dedicated internal risk management organization analyzes risks throughout the order acquisition and project execution stages and regularly reports key issues to the CEO and executive management.
Risks that may have a significant impact on business operations are immediately reported to the CEO, executive management, and the Board of Directors to enable timely and effective decision-making.
Furthermore, HanmiGlobal strengthens monitoring of high-risk areas, including overseas businesses, subsidiaries and branch offices, development and investment projects, and project financing (PF)-based projects. Through close cooperation among business divisions and affiliated companies, the company proactively responds to unexpected risks and enhances overall risk resilience.
Risk Management Process
-
1. Identify external and internal issues and stakeholder expectations
- • Analyze past performance and key changes in the business environment
- • Capture stakeholder needs
-
2. Define and assess risks
- • Specify each identified risk
- • Evaluate likelihood and potential impact
-
3. Select priority risks
- • Prioritize risks and choose those requiring focused management
-
4. Formulate mitigation measures
- • Review mitigation plans for errors and refine them
- • Develop and implement additional actions when new risks arise
-
5. Conduct regular monitoring
- • Track current risk status and emerging trends
- • Verify on-site execution of established countermeasures
-
6. Update and supplement countermeasures
- • Identify and close gaps between plans and actual practice
- • Add controls for newly entered business areas
-
7. Improve the risk management system
- • Determine response strategies: accept, transfer, mitigate, or avoid
- • Set management targets, schedules, and responsible units
Risk Management Organization
Enterprise-Level Risk Management
HanmiGlobal monitors the entire project life-cycle, from bid stage through close-out, by defining key processes for every phase and tracking the risks that could jeopardize target outcomes.
Projects requiring heightened oversight (e.g., potential serious accidents or regulatory violations) are placed on a risk dashboard, allowing early detection and rapid cross-functional response. Core risk indicators are quantified so that management can judge whether the control procedures are working as intended.
Order-Intake
Contracts
- Backlog value
- Canceled/terminated/reduced contracts
- Contract management index
Safety
Compliance
- Technical personnel or serious accident cases
- Regulatory violation score
- External reputation damage incidents
Client
- Personnel replacement requests from owners
- Number of lawsuits filed and confirmed loss amounts
Collections
- Collection rate
- Unbilled work in progress
- Long outstanding receivables
Profitability
Finance
- Loss amount
- Current ratio and debt-to-equity ratio
HR
Workforce Management
- Turnover rate
- Idle staff ratio
Order-Intake Risk Management
At each month-end, HanmiGlobal verifies the exact size of its order backlog and checks that it remains above the minimum threshold set by management, thereby supporting stable operations. The company also tracks the annual backlog-reduction ratio caused by project suspensions, contract terminations, or scope reductions and assesses whether the percentage stays within target limits. This discipline protects the company’s financial resilience and bolsters long-term business sustainability.
Contract Risk Management
To reinforce consistency and efficiency in contract administration, HanmiGlobal uses a Contract Management Index. The index is calculated from the average score of a year-to-date contract-management checklist and provides a quantitative gauge of how systematically each stage of the contracting process is being handled.
Safety Risk Management
HanmiGlobal designates the annual number of technical personnel accidents and serious industrial incidents as a critical safety metric and has set a zero-incident target. This goal underscores the company’s determination to prevent any loss of life or major injury, to foster a safe working environment, and to safeguard the health and well-being of all employees.
Compliance Risk Management
To minimize legal exposure, HanmiGlobal manages its Regulatory Violation Score so that the yearly total remains zero. The score counts every administrative penalty, fine, surcharge, or demerit imposed for non-compliance. The company also tracks reputational incidents, aiming for no occurrences each year. These controls strengthen the culture of compliance and protect HanmiGlobal’s external reputation.
Customer Risk Management
HanmiGlobal keeps the client-requested personnel-replacement rate at a very low threshold relative to the total on-site staff, thereby preserving project stability and team continuity. The company also tracks new lawsuits and confirmed loss amounts, aiming to achieve zero cases and zero monetary losses each year. These measures help control customer-related risk and support long-term partnerships.
HR Risk Management
The annual voluntary turnover rate is closely monitored and managed to remain at or below 4.0% for regular employees. Centering on resignations that staff initiate themselves, this target helps stabilize the organization and improve the long-term efficiency of human-resources management. By raising employee satisfaction and loyalty while preventing the loss of high-performing talent, the company strengthens its overall competitiveness.
Organization-Level Risk Management
HanmiGlobal performs risk management at every operating tier, including project sites, business divisions, and corporate support functions. For each unit, priority risks are identified to reflect its specific characteristics and stakeholder relationships. The process covers a broad spectrum of risk factors, including environment, human rights and labor, health and safety, and ethics and compliance. After evaluating likelihood and impact, the company selects the key risks, devises mitigation plans, and monitors implementation on an ongoing basis.