Executive Responsibilities, Risk Management Integrated... Deloitte Anjin Completes Upgrade of Hana Securities’ Responsibility Map

Establishing a System Linked to Operational Risk Management Activities

Deloitte Anjin and Hana Securities have overhauled a management system based on a responsibility map. The project went beyond clarifying executive accountability to establish a framework for managing risks, the firms said.

On October 15, Deloitte Anjin announced that it had completed the “Enhancement of the Operational Risk Management System Based on a Responsibility Map” project with Hana Securities.

The project was launched to help executives at financial companies more effectively fulfill their strengthened responsibilities for internal control and risk management following amendments to the Act on Corporate Governance of Financial Companies.

Hana Securities and Deloitte Anjin focused on linking executives’ responsibilities to actual risk management activities, going beyond mere regulatory compliance and clarifying accountability. They concentrated on laying the groundwork to connect executives’ management responsibilities with operational risk management at the front line and systematically strengthen the ability to prevent incidents.

In particular, the focus was on evolving the system beyond simply defining “who is responsible” into a framework for putting into practice “how risks will be managed.” The firms said they established a management system that links executives’ responsibilities to actual operational risk management activities, enabling risks to be continuously identified, controlled, and monitored.

Deloitte Anjin conducted a comprehensive review of the responsibilities of all Hana Securities executives and employees, as well as the risks associated with each area of work. The review identified key incident scenarios that could arise in the course of work and gaps in management, which were then used to enhance the operational risk management system.

They also established an integrated management system that organically links executives’ assigned responsibilities and specific accountabilities with key management obligations, risk and control self-assessment (RCSA), and risk profiles.

Hana Securities plans to use the system in its ongoing operations and proactively address the risks and management gaps identified during the review process, further strengthening its preventive approach to internal control and its operational risk management capabilities.

Kim Sun-ho, a partner in Deloitte Anjin’s Audit & Assurance business, said, “Since the introduction of responsibility maps, a key challenge for financial companies has been to effectively connect them with actual internal control and risk management activities. The Hana Securities case is significant because it links the responsibility map with the operational risk management system, bringing executives’ management responsibilities and front-line risk management together in a single framework.”

This content was produced with the assistance of AI translation services.