Kang Tae-young, President of NongHyup Bank, First Move... "Leading Internal Control"

NH Nonghyup Bank President Kang Taeyoung has presented internal control measures as his first action after taking office. The bank plans to file patents for its self-developed system and create the financial accident risk map, the first of its kind in the financial sector, to identify vulnerable points for financial accidents. Immediately after the inauguration ceremony, he also conducted a financial accident prevention pledge with all employees, signaling his determination to lead ahead of other banks not only in preventing the recurrence of financial accidents but also in internal control systems.

According to Nonghyup Bank on the 14th, the Compliance Monitoring Department recently proposed tasks to strengthen internal controls. These tasks focus on reinforcing the internal control infrastructure. To effectively respond to risks in the future accountability structure, the bank developed the ‘NH Accountability Control System.’ The accountability structure is a document that specifies concrete responsibilities according to the positions held by financial company executives. This system is composed of three stages with the purpose of digitalizing the operation of the accountability structure and internal control management. Through this, it helps employees understand, familiarize themselves with, and manage their respective responsibilities.

Kang Tae-young, President of NH Nonghyup Bank, presented internal control measures as his first action after taking office. Photo by NH Nonghyup Bank

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Starting this month, the Accountability Specification System was introduced to clearly allocate responsibilities and focus on helping employees clearly understand the responsibilities assigned to them. Subsequently, in the second quarter of this year, the Accountability Information System will be introduced to provide real-time or customized necessary accountability information (a personalized library function) so that employees can accurately familiarize themselves with their responsibilities. This is not only the first in the industry but also a newly developed system for which a patent application has been filed. After allocating and familiarizing with responsibilities, the Accountability Management System, which automates or systematizes compliance and the compliance system, will also be applied in the second quarter. This system also automates and systematizes the management of evidence for compliance with responsibilities.

Nonghyup Bank will also create a ‘Financial Accident Risk Map’ to identify vulnerable points for financial accidents. The intention is to establish a system that can detect vulnerabilities in advance and manage them intensively, deploying necessary resources in a timely manner. This map is also the first of its kind in the financial sector. Punishment regulations for financial accidents have also been strengthened. In the case of regional headquarters heads, if two financial accidents of 1 billion KRW or more occur at branches under their jurisdiction, they will be subject to suspension and standby orders. Branch managers will be immediately subject to these measures.

In addition, an internal control expert certification system will be introduced for office managers and branch auditors. This system trains experts by evaluating branch audits, financial accident cases, and ethical conduct guidelines through computer-based exams. The bank is considering abolishing the rotating audit system and will also operate a branch audit monitoring team.

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Strengthening internal controls is a matter that President Kang Taeyoung is personally overseeing at Nonghyup Bank. In his inaugural speech, he expressed a strong will to achieve zero financial accidents and participated in the financial accident prevention pledge ceremony. It is known that this internal control strengthening task was drafted by Hong Myungjong, the Compliance Officer (Vice President), and that President Kang gave detailed instructions and special emphasis on it.

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