The Korea Technology Finance Corporation (KTFC) (Chairman Jong-ho Kim, hereinafter referred to as “KIBO”) announced on Monday the 23rd that it will establish its own risk management philosophy, “RISKARE,” and begin full-scale implementation of a mid-term risk management roadmap centered around it in order to increase the efficiency of support for small and medium-sized enterprises and strengthen the stability of risk management.
'RISKARE' is a new concept of risk management philosophy that recognizes risk not as something to simply avoid or suppress, but as a companion entity that must be managed and developed together, similar to the human growth process. In accordance with this philosophy, Kibo plans to apply the PDCA (Plan-Do-Check-Act) cycle principle to the entire risk management process to systematically feed back results and advance risk-based policy projects.
In order to practically apply the 'Risk Care' philosophy, Kibo announced the research service for "Reconstruction of Risk Assessment Model and Early Warning Model" in April and started the first implementation stage of implementing the risk management roadmap into an actual system. This research service focuses on overcoming the limitations of existing logit-based analysis by utilizing the latest analysis techniques and developing a more precise and predictive risk assessment and early warning model.
In addition, KIBO completed trademark registration for 'RISKARE' in May to raise awareness domestically and internationally, and plans to gradually build a risk management system according to the roadmap by 2027, starting with the development of a risk assessment model and an early warning model this month. KIBO ultimately plans to establish a next-generation risk management system that integrates risk prediction, warning, analysis, and response functions, and in particular, plans to introduce a default prediction model that fully reflects machine learning algorithms for the first time among policy finance institutions to further strengthen discrimination, stability, and crisis response capabilities.
Park Joo-sun, Executive Director of Kibo, said, “In order for Kibo to further strengthen its role as a policy finance institution, it is necessary to continuously improve the risk management system to enable accurate risk prediction and preemptive response,” and “Kibo plans to complete an effective policy finance support system by reflecting the risk care philosophy throughout the organizational culture and work processes.”
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