Risk Management

Basic approach

In implementing sustainability management, we manage risks using calculations and forecasts of various types of risks; we also recognize that risks present not only losses or threats but also opportunities, and we respond appropriately to risks necessary for our business continuity and to conduct stable business operations.

Toward the implementation of risk management

Following our Risk Management Regulations, we identify, analyze, and evaluate business risks associated with the execution of business operations and take preventive measures to minimize damages by responding promptly and accurately to any risks that arise. As an organizational body promoting risk management, the Comprehensive Risk Management Committee reports and deliberates on the Group’s basic risk management policy, plans related to risk management, and progress of measures, and conducts risk management to respond appropriately and swiftly to the risks that arise in association with our business development.

Risk management process

Risks are regularly identified and selected, countermeasures are formulated, monitored, corrected, and improved, and the PDCA cycle for risk management is used.

Risk category

External environmental risk Disaster / large-scale accident risk Occurrence of disaster/accident/infectious disease
Cyber attack risk Cyber attack / Virus infection
Foreign exchange and interest rate fluctuation risk Translation risk associated with foreign exchange rate fluctuation
Environmental risk Environmental regulations violations / environmental pollution
Country risk Changes in the political/economic environment of other countries
Management strategy risk Compliance risk Violations of laws/regulations/contracts and harassment/overwork
Financial risk Fictitious accounting/shortage of funds
Quality control risk Occurrence of significant quality defects
Funding risk Failure to raise funds
Personnel and labor risk Shortage of personnel/labor, inadequate occupational health and safety
IT system risk System downtime, information leakage

Environmental, Social and Governance