Risk Management

In order to achieve sustainable growth, the Group endeavors to establish and improve risk management systems so that it can identify various risks that may hinder the achievement of its business objectives at an early stage and take appropriate measures to counter them, while at the same time dealing promptly and appropriately with risks as they arise.

The Group's initiatives to this end are based on the policy of compliance with laws, regulations, the Articles of Incorporation, the Group Charter of Corporate Behavior, and various company regulations. Under the supervision of the Group Risk Management Committee, the Group identifies risks in the light of developments in the legal systems and the social environment and takes appropriate preventive measures. If a significant risk materializes, the Group responds appropriately to minimize the damage and considers and implements effective measures to prevent recurrence.

The risk management system is overseen by the Group Risk Management Committee, which formulates policies and issues instructions to be followed regarding important risks that may affect the entire Group. The Committee is chaired by the Representative Director and President of the Company.

The system is designed to ensure that each department manager of the Company identifies, classifies, evaluates, and effectively manages our potential risks. In subsidiaries and other entities, this is carried out by the corresponding risk management organization or the person responsible.

Each department manager, subsidiaries, and other entities report quarterly on the status of risk management and events that occurred to the Group Risk Management Committee, which then reports to the Board of Directors.

If a significant risk materializes, it is promptly reported to the chairperson of the Committee, who in turn convenes a meeting of the Group Risk Management Committee and gives instructions to the secretariat. Information management in a “Level 2 (warning)" or higher situation—which requires an emergency response—will be carefully reviewed in coordination with regulatory authorities, related organizations, and each department as necessary, and appropriate measures to be taken.