CJ物流

Risk Governance Structure

In strengthening our enterprise-wide risk resilience rooted in ESG principles, we have implemented an expanded risk governance framework that incorporates frontline risk sensing and double materiality assessment as core elements preceding the traditional Three Lines of Defense model. This integrated approach allows us to proactively identify and address stakeholder-specific impact issues, establishing a comprehensive, impact-driven risk management system that reinforces the effectiveness of conventional defense structures. Under this model, the first line of defense consists of operational departments that manage specific risk categories through direct, business-centered response activities. The second line comprises the enterprise risk management departments and executive leadership, who are responsible for strategic oversight and supervisory functions. The third line is composed of the internal audit unit and independent assurance bodies, which carry out objective evaluations and performance assessments. Together, these lines form a layered, accountable system that ensures both the integrity and completeness of our organization-wide risk response. Stakeholder feedback is continuously integrated into our risk management processes. ESG-related risks and mitigation activities are transparently disclosed through our Annual Report and Sustainability Report, reinforcing trust and accountability with stakeholders. Through this advanced and integrated risk governance system, we continue to enhance our ability to manage risks in alignment with long-term sustainability objectives.

[Risk Management Governance Structure]

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Enterprise Risk Response Process

We operate an expanded risk governance framework that enhances the efficiency and transparency of our enterprise risk management system by evolving the traditional Three Lines of Defense model into an impact-based risk management framework aligned with ESG principles. This advanced approach goes beyond control-centered responses, enabling proactive identification and strategic management of negative impact factors across the business.
Specifically, we conduct a double materiality assessment incorporating ESG stakeholder input, focused on the three core impact domains of People, Planet, and Prosperity. Through our Frontline Risk Sensing System, we have established an integrated response structure that facilitates early detection, assessment, and mitigation of not only short-term financial risks but also long-term and less visible non-financial risks.
Each risk, evaluated based on its likelihood and severity, is shared company-wide via a continuous reporting system hosted on our intranet. These risks are regularly reviewed and prioritized as agenda items at the weekly Risk Management Council meetings. Furthermore, key risk matters are formally reported to the Board at least twice a year, ensuring oversight at the highest executive level.
The effectiveness of risk management and enterprise-wide processes, as well as performance reviews, are independently evaluated at least once annually by both the internal audit unit and external assurance bodies, focusing on the level of risk control and achievement of key performance indicators (KPIs).

[Integrated Process for Risk Response]

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Risk types and Factors

CJ Logistics is establishing an integrated Risk Management system to cope with company-wide risks that may occur during management activities. Risk Management includes management of operational risks, market risks, regulatory risks, labor-management problems, illegalities, safety environments, etc. And the company manage the risks of customer complaints and information leakage, collect stakeholder feedback to further manage non-financial risks identified in the criticality assessment. In addition, to systematically respond to risks by risk factor, the company categorizes risk into three stages (R1, R2, R3) and establish response guidelines including management processes and action guidelines for each response stage. CJ logistics is making efforts to effectively respond to risks by introducing a mobile reporting system that enables immediate reporting and response regardless of location and time.