Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Financial firms vow to enhance risk management
Woori Financial Group Chairman and CEO Son Tae-seung speaks during a workshop for the second half of the year at the group's headquarters in central Seoul, Friday. Courtesy of Woori Financial Group
By Yi Whan-woo
By Yi Whan-woo
Companies in the finance industry are mapping out strategies for the second half of the year, amid growing economic risks posed by soaring inflation and stagnant growth.
Woori Financial Group, NongHyup Financial Group and Shinhan Bank each held their own workshops, Friday, with the leader of each firm addressing the need for enhanced risk management.
The three workshops followed a meeting hosted by KB Financial Group in early July when its Chairman and CEO Yoon Jong-kyoo underlined the importance of consulting services for small businesses as a part of efforts to better safeguard clients' assets.
Speaking at the workshop held at the firm's headquarters in central Seoul and broadcast live on YouTube, Woori Financial Group Chairman and CEO Son Tae-seung said risk management, including self-regulatory control, is critical in overcoming the economic crisis.
The workshop was attended by 1,000 employees, including CEOs and executives, from all of the group's affiliates.
Chairman Son also laid out specific goals for enhancing the group's unique, competitive characteristics compared to rivals, bolstering digital innovation and environmental, social, and corporate governance (ESG)-oriented leadership principles.
He spoke of the need for financial businesses to take responsibility for the socially vulnerable who struggle with repayments amid the fast-growing key interest rate.
During the firm's workshop at its training institute in Goyang, Gyeonggi Province, NongHyup Financial Group Chairman and CEO, Son Byung-Hwan said that the second half of 2022 will see “a mix of opportunities and crises due to the rapidly-changing environment caused by both domestic and external risks.”
Accordingly, he asked the group's CEOs, executives and mid-level managers to “fully concentrate to manage risks and implement principles of sustainable management.”
He noted many of the group's clients are farmers and work in farming-related industries and that its services should, “be thoroughly prepared to offer what they expect.”
Shinhan Bank CEO Jin Ok-dong prioritized safeguarding clients' assets against inflation and growth slowdown during the lender's workshop at Songdo Convensia in Incheon.
The workshop's main themes were focused on the topics of strong fundamentals and the pursuance of sustainable innovation. Therefore, participants discussed self-regulatory control as a means to risk management and ESG-oriented leadership.
The CEO said, “Our success can only be possible through the support of our customers and society, and to do so, we must think outside the box to see our problems from a third-person perspective, not our own perspective.”