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Home Sustainability Focus Areas Risk Management Overview

Risk Management

Hankook Tire is maximizing its ability to respond proactively by building an integrated risk management system. By assessing and addressing the sources of potential danger, our desire is to ensure sustainable growth for our stakeholders and our communities.

Hankook Tire is maximizing its ability to respond proactively by building an integrated risk management system. By assessing and addressing the sources of potential danger, our desire is to ensure sustainable growth for our stakeholders and our communities.
IR

Context

It’s critical to preemptively identify and systematically manage internal and external risks incidental to business activities in the aspect of corporate sustainability.

Risk & Opportunity

Expanding the scale and scope of our activities in manufacturing, distributing and selling products, we are exposed to diverse risks whether those are large or small. However, those risks and uncertainties in management can be minimized by systematic control and responses.

Future Plans and Outlook

Our commitment lies in preemptively responding to risks through sustained and systematized risk management activities. To this end, we will continue to define new risks to be managed in addition to eight key risks in 2016. Ultimately, we will establish an integrated company-wide risk management system to effectively identify, analyze and flexibly respond to the company’s internal and external risks.

 

Progress of Health and safety

  • Our Approach

    Hankook Tire’s declaration of management responsibility and governance for integrated risk management

    Declaration

    We at Hankook Tire will define risks to be preferentially managed and then, carry out enterprise-wide integrated risk management activities that encompass preemptive management measures and follow-up response guidelines from the compliance perspective, turning potential risks into opportunities for another takeoff.

    Management Responsibility and Governance

    Compliance Committee
    • • Chaired by: Corporate Strategy Planning Division Director
    • • Supervised by: Legal Team
    • • Members: Audit Team, Purchasing Planning Team, Corporate Management Team 1, Proactive University, AMC) Technical Service Team, CSR Team
  • 2015 Achievements

    2015 major achievements and accomplishments

    2015 Achievements

    ● Completed ◐ Partially Completed ○ Not Completed
    2015 Achievements
    Code Key Managerial Issues Goals Achievements Completion
    IR1
    Risk Manage-ment by Detailed Issue
    Anti-Dumping
    • ‌‌Simulate the Chinese domestic/ EU-export prices of our products manufactured in China and verify anti-dumping risks
    • Calculated and analyzed dumping margin of tires manufactured in China by key export countries
    Fair Trade
    • Inspect and improve compliance with Subcontracting Act
    • Inspected conditions and status of payment to subcontractors related to the Fair Transactions in Subcontracting Act
    Sexual Harassment Prevention
    • Regularize prevention trainings conducted at overseas headquarters in 2014
    • Implement prevention trainings at Hungary and Indonesia Plants
    • ‌‌Conducted trainings at worksites (HQs in Korea, US and Europe, and their affiliates) once a year
    • Expanded trainings to Hungary and Indonesia Plants and several affiliates of the Europe headquarters
    Labor-Management Culture
    • ‌‌Revise the TP Employment· Labor Law Compliance Guideline
    • Distributed English version of the ‘TP Employment· Labor Law Compliance Guideline’
    • Revised the ‘TP Employment·Labor Law Compliance Guideline’ (focus on references in practices and add precedents)
    Customer Information Protection
    • ‌‌Diagnose our compliance concerning the collection of personal information and provide legal opinion
    • ‌‌Examined and supplemented the personal information collection and utilization system
    Disputes over IP(Intellectual Property) & Trademark Rights
    • ‌‌Register trademark rights and manage relevant disputesㆍ‌‌ Establish a trademark rights asset management system (regular asset management methods, etc.)
    • ‌‌Managed the application and registration of trademark rights in each country and took legal actions to infringement of trademark rights (306 applications and 181 registrations)
    • Registered a new trademark and took legal actions to disputes (Laufenn)
    Product Liability (PL)
    • Manage PL risks regarding Tennessee Plant (TP) establishment
    • ‌‌Set up R&R for responses to PL lawsuits in the US
    • ‌‌Analyzed and managed the PL insurance conditions in North America
    Affiliates Management Risk
    • Manage the governance structure of affiliates
    • Supported compliance activities with regard to expanding the equity of emFrontier owned by Hankook Tire Worldwide
  • 2016 Plans

    2016 plans and relevant office

    2016 Plans

    2015 Plans
    Code Key Managerial Issues Commitments Key Index Deadline Team in Charge
    IR1
    Risk Manage-ment by Detailed Issue
    Anti-Dumping
    • ‌‌Manage the issue at the ‘Chinese Antitrust Laws Risk’ level
    Review the Chinese Antitrust Laws Oct. Legal Team
    Fair Trade
    • Build a company-wide fair trade education system
    Systematize trainings about fair trade at the company level Oct. Legal Team
    Prevention of Sexual Harassment
    • Check regulations of each country with regard to sexual harassment prevention and adopt the results to trainings
    • Diagnose the status of sexual harassment prevention trainings at overseas headquarters
    Conduct trainings about sexual harassment prevention and make diagnostic reports Oct. Legal Team
    Labor-Management Culture
    • ‌‌Complete and distribute the guideline version 2.0 and support compliance with labor laws at TP
    Complete and distribute the guideline version 2.0 Oct. Legal Team
    Protection of Customer Information
    • ‌‌Comply with mandatory certification for the information protection management system in accordance with the amendment of the Information & Communication Network Act (expected enforcement on Jun. 2, 2016)
    Obtain the certification on information protection management system Oct. Legal Team
    Disputes over IP (Intellectual Property) & Trademark Rights
    • ‌‌Improve monitoring of the same or similar trademarks
    Monitor the application of similar trademarks Oct. Legal Team
    Product Liability (PL)
    • Manage PL risks in relation to products manufactured in China
    Respond to PL risks in relation to products manufactured in China Oct. Legal Team
    Affiliates Management Risk
    • ‌‌Materialize affiliates’ fair trade risks
    Prevent affiliates’ fare trade risks Oct. Legal Team

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