Risk Management
Policy and Basic Approach
The basic policy on Group-wide risk management activities is defined as follows.
(1)We deem risk management to be an important management task, and work to minimize human, economic, and social damage, carry out early restoration and prevent recurrence, while supporting the development of people and society, by contributing to the creation new value and the resolution of social issues, including ESG and the SDGs.
(2)Led by the ERM Promotion Committee, we work in cooperation with each department to continuously identify, analyze, evaluate, monitor risks, and strive to conduct ongoing reviews and improvements.
(3)We promote business continuity management activities to prepare for crises, and respond swiftly with integrity in the event of an emergency, to minimize damage through responsible actions, in line with laws and regulations and social norms, while placing the highest priority on the safety of human life.
(4)We disclose information in a timely and appropriate manner to customers and shareholders, regarding the details of, and initiatives for the risks surrounding the Company, and build strong relationships with them.
(5)We provide each employee with opportunities to learn from one another in a spirit of humility through regular education and training, in order to enhance their ability to deal with risks, and to encourage employees to act appropriately as a member of society.
Structure & System
We established the Risk Management Committee under the supervision of the ERM Promotion Committee, and have put in place a system for cross-organizational risk management by preparing various regulations and manuals in order to properly respond to crises and prevent potential business continuity risks.
• ERM Promotion Committee:The Committee shares internal risk information, evaluates risks, identifies important risks, considers response policies, and reports and proposes policies for dealing with risks, as well as measures to prevent recurrence to the Director of the Board. The committee improves risk management awareness within the organization, primarily by adopting the policies determined within the organization, understanding the status of implementation, and providing education.
Initiatives
Risk Identification Process
Even in an increasingly uncertain business environment marked by global economic and geopolitical changes, we enhances the accuracy of anticipating and identifying potential management risks by utilizing risk management tools, in order to steadily execute its growth strategy and sustainably enhance corporate value. Through the appropriate management of such risks, we continue to strengthen our organizational resilience, enabling accurate situational awareness and swift responses to a wide range of risks and changes.
Risk Chart
- Initiatives for Quality Assurance
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We recognize that quality defects and misconduct pose significant risks that can undermine customer value and corporate trust. To address these risks, we strengthened the effectiveness of our quality assurance framework throughout FY2025. This included a comprehensive review of our fulfillment of all contractual obligations with customers, as well as on site interviews to identify operational vulnerabilities. Based on these findings, we advanced improvements such as refining procedures and clarifying key control points.
In addition, due to the deficiencies related to the JIS Mark certification display on certain product labels, we promptly conducted a root cause analysis, implemented corrective actions, and reinforced our management system by revalidating the related procedures. To further foster an environment where misconduct is unlikely to occur, we also enhanced quality related training programs and promoted company wide engagement to strengthen quality awareness.
Through these initiatives, we aim to further enhance the reliability of our Group.
- Information security measures
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From the perspective of company-wide information management and the implementation of enhanced security measures, we established an Information Security Committee in April 2022.Under the direction of the Information Security Committee, we are comprehensively strengthening information security measures across organizational, technical, physical, and human dimensions. As part of these efforts, we provide year-round employee education through e-learning programs and conduct planned phishing and targeted email attack simulations, thereby enhancing our response capabilities from both technical and human perspectives.
