SG Holdings (HD) will implement an organizational restructuring effective October 1st to further strengthen and enhance the group's risk management and governance system.
<Overview of the three-department structure and SG Holdings organization>
The reorganization will create a three-department structure consisting of "Operational Execution Department," "Indirect Management Department," and "Internal Audit Department," clarifying the role of checks and balances.
A new "Risk Management Office" will be established within the indirect management department, and the risk management functions of the General Affairs Department will be transferred to it. This office will promote comprehensive management of various risks and strengthen management by the relevant departments, as well as conduct risk checks and provide advice when business execution departments make investments or handle new oil-related business.
Furthermore, a new "Governance Control Department" will be established as the internal audit department. This department will conduct internal audits and verify internal control evaluation items, assess their effectiveness to enhance performance, and perform final reviews as a check on investments and new operations. Additionally, a new "Secretary's Office" will be established, transferring the secretarial functions of the General Affairs Department to it.
In its medium-term management plan "SGH Story 2027," which started in April 2025, the company is promoting initiatives toward sustainable management, and has set forth "enhancing governance to improve corporate value" as a key strategy.
The group has been working to improve its governance system for some time, but in light of the addition of Meito Transport Group and Hutech Norin Group to the group in July 2024, and Morrison Express Worldwide Corporation in May 2025, this organizational restructuring will further enhance awareness of group governance and risk management, and deepen its effectiveness.
