GOVERNANCE
Risk Management
Corporate Risk Management System
Risk Management Organization
At Pan Ocean, we operate a corporate-level risk management committee to respond risks associated with business activities.
The committee is consisted of the chair, the vice chair, area-specific representatives, and the secretary. The meetings may also be attended by heads of relevant departments and teams as needed. The committee holds regular quarterly meetings and extraordinary meetings whenever necessary. It identifies and evaluates risks in the company’s overall business management and develops countermeasures and concrete action plans in response to the identified risks, thereby proactively responding to challenges the company may face.
Risk Types and Response Activities
| Type | Topic | Response |
|---|---|---|
| Account risk | Customer relationship management (CRM) | Strengthen data- and system-based customer risk management |
| Regular credit rating | Prevent customer risks based on organized customer rating management and information sharing | |
| Financial risk | Internal accounting | Check internal accounting operations and key issues |
| Receivables management | Monitor and take action on receivables | |
| Legal risk | Contractual issues concerning COVID-19 | Share key contractual issues concerning COVID-19 and strengthen response thereto |
| Shipping industry risk | Market conditions | Check and manage the fleet position |
| Oil price | Monitor and respond to oil price fluctuations | |
| Derivatives | Manage regulations on forward freight agreements and fuel oil hedge deals | |
| Marine/environmental risk | COVID-19 | Monitor and respond to safety risks concerning COVID-19 and country-specific regulations |
| IMO environmental regulations | Continue monitoring developments surrounding the IMO environmental regulations and developing countermeasures | |
| Fuel oil supply | Check the fuel oil supply process | |
| Others | Major climate risk | Monitor and respond to major climate risks such as typhoons, hurricanes, and monsoons |
| Cybersecurity risk | Monitor cybersecurity risks and check the internal response system | |
| Disclosure rules | Monitor and respond to amendments in disclosure rules |