Risk Management
#Proactive Risk Management #Self-Regulated Management #Risk Screening
Unpredictable risks—both internal and external—result from the rapidly changing business environment and increasing complexity of social structures. These risks pose a threat to the growth and survival of the business, but they can also represent opportunities for business growth if dealt with in an appropriate manner. AfreecaTV manages risks preemptively and creates new value by expanding its business scope and turning challenges into opportunities.
Stricter Corporate Risk Management
AfreecaTV has established a company-wide risk management system to continuously improve market competitiveness and prepare for predicted risk factors in advance. By operating a risk management system, we secure engines for sustainable growth. Moreover, all the steps from the response after the identification and assessment of a risk to preventive measures following all post-crisis actions have been formulated into a risk management process so that we can manage risks precisely and systematically. The board of directors oversees the management of risk and works to mitigate risk-induced losses through an efficient decision-making process led by the CEO.
Risk Management Process
-
STEP 01 Identification and assessment
Determine priorities by identifying and assessing risks
-
STEP 02 Control and response
Establish a site-centered crisis response plan that enables an immediate response
-
STEP 03 Monitoring and prevention activities
Through monitoring, upgrade prevention activities with casefocused training
-
STEP 04 Action (recovery) and reporting
Take post-crisis recovery measures and report internally
Self-Regulation
AfreecaTV guarantees individual freedom of expression, which is a basic right of Internet users. At the same time, we ensure that this freedom is not abused in a way that threatens the individual rights of others and that human rights are protected as well. For example, we adhere to the Act on Promotion of Information and Communications Network Utilization and Information Protection and perform self-regulation after clarifying the interpretation of the law or areas that are not stipulated in the law by consulting with government agencies. Through ongoing discussion with government departments and other relevant agencies, we help to establish appropriate legislation and guidelines for our rapidly changing industry. We will continue working to ensure freedom of expression for our users, while also enhancing human rights accountability. AfreecaTV’s aim is to be a media channel based on mutual respect.
Key Risk Screening
We analyze stakeholder risks in various ways and proactively respond to them to ensure stable business operation. We identify and manage the key risks associated with the business environment that must be taken into consideration in our business operations as a matter of priority. By doing so, we can enhance our risk management capabilities and manage risks in a systematic way.
Risk Types
AfreecaTV aims to foster sustainable growth by preventing and managing risk factors in a systematic way. We classify risks by type, identify the impact of each risk on our business, and systematically respond to these risks through clear response activities for each type.
Risk Types and Response Activities
| Risk | Impact on business | Response activities and status | |
|---|---|---|---|
| Business risk | New business expansion and increased competition | Changes in industrial and competitive structures due to intensifying market competition and expansion into new business areas |
|
| Information security | Negative business impact of data manipulation, hacking, and other malicious interferences related to doing business in an IT-based industry; legal liability or reduced competitiveness resulting from inadequate internal information management |
|
|
| Content risk | Impact of harmful content on brand image |
|
|
| Financial risk | Investment | Concern about financial losses arising from performance that fails to meet investment plan goals due to poor investment decisions or changes in the business environment |
|
| Finance | Exposure to market, credit, liquidity, and other risks resulting from expanding our global activities and other areas of business |
|
|
| Social/ environmental risk |
Legal interpretation risk | Financial losses and damage to the corporate image from non-compliance with laws and regulations resulting in business suspension, fines, or other penalty |
|
| Energy management | Various regulations on energy use as a result of expanded global management related to domestic and overseas energy consumption |
|
|
Management of Risks by Type
Content Risk Management
AfreecaTV raises awareness among employees through ex-ante training on content risk and operates processes and a response system to prevent the recurrence of past risk factors. Through strict management and inspection, we strive to create a healthy environment in which many users can engage in two-way communication.
-
Ex-ante training
Through the AfreecaTV BJ training program, we provide BJs with useful information to their work, including lists of precautions to be aware of. Our friendly and easy-to-understand training on webtoons and video formats helps prevent the occurrence of risk factors during broadcasting.
-
User reporting system
On top of the constant monitoring of the internal monitoring organization, users can directly report violations of the law or our User polices, as well as harm caused to others. The company is constantly striving to mitigate risks by rewarding users who report helpful information.
-
Real-time monitoring
Our 24-hour internal monitoring department monitors and responds in real time to harmful content that may appear within our numerous simultaneous broadcasts. We also block harmful content by freezing the chat screen or immediately suspending the transmission of a broadcast.
-
Follow-up procedures
For inappropriate content that occurs despite our policies and systematic mechanisms to prevent risks, we are committed to follow ups and reaching a resolution. This process can involve temporarily or permanently banning users, or even legal action. In this way, we are determined to raise awareness and prevent recurrences.
Financial/Investment Risk Management
AfreecaTV strictly manages potential financial risks to prevent the occurrence of related issues and maximize shareholder value through a sound capital structure. To that end, we have established an internal organization and processes. The board of directors ensures that large investments are adequately considered in advance by establishing rules of approval for specific investment amounts. We consistently monitor changes in the market and the environment to identify risks.
By discussing investments with related departments, we analyze and manage the feasibility of each investment in order to respond to financial/investment risks over the long term. With the enactment of the Internal Controls and Management Regulations, we have ensured compliance with laws and regulations and improved operational efficiency. As internal accounting management systems have become a more significant corporate success factor, we are working to improve our internal accounting regulations and processes to enhance the credibility of our accounting data.
Social Risk Management
AfreecaTV strictly complies with relevant laws, including the Personal Information Protection Act, the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc., and the Act on the Consumer Protection in Electronic Commerce, etc. To take things a step further, we are also working to respond to social risks and reducing such risks proactively through self-regulation and other efforts to conform to new statutory and ethical standards resulting from social changes.
For example, we had already implemented purchase ceilings to restrict excessive in-platform item purchases even before discussions were held on legislation to limit what users could spend per day in online activities. For minors, we use separate criteria when setting these ceilings. We identify risks in advance and respond adequately by reaching a social consensus on changes in the industry and the market through communication with government departments and relevant agencies.
Environmental Risk Management
AfreecaTV strives to respond swiftly to potential environmental risks as the demand for the environmentally responsible management of companies is rising and the regulations on greenhouse gas emissions are becoming more stringent. To address the changes in the data environment brought about by the COVID-19 pandemic, we prepare to install eco-friendly servers. We are making various efforts to practice environmental management, such as being mindful of the environment in building the IDC that is expected to be completed in 2025.
ListContent List
-
SUSTAINABILITYmoreEnvironment
#Energy Conservation Activities #Green Campaign #Environment-Oriented Content -
SUSTAINABILITYmoreSocial
#Media responsibility #Clean content #Employees #Strengthening partnership #Social contribution -
SUSTAINABILITYmoreSocial Contributions
#Social Contributions through Content #Social Contributions through Participation #1% Charity -
SUSTAINABILITYmoreGovernance
#Board of Directors #Independence #Shareholders -
SUSTAINABILITYmoreRisk Management
#Proactive Risk Management #Self-Regulated Management #Risk Screening -
SUSTAINABILITYmoreEthical Management
#Code of Conduct #Ethic Compliance #Whistleblower System -
SUSTAINABILITYmoreCyber Security
#Information Protection System #Privacy Protection Training #ISMS #Cybersecurity