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 |