Risk Management Basic Policy

In order to achieve our business objectives, we manage various risks that may have an impact, and define a series of planning and control processes to take appropriate measures in the event of unfavorable results as risk management. We aim to enhance corporate value by conducting appropriate risk management.

 

The following is our basic policy for risk management.

1. We shall comply with our corporate philosophy, management policies, and standards of conduct.
2. Stable business continuity and the protection of corporate assets, as well as the mental and physical safety and property of our group's officers and employees and their families.

Risk Category

1. Fundamental process risks
   Risks associated with the execution of major operations, such as service provision, sales, management, construction, and work
2. Supporting process risk
   Risks associated with the execution of operations, such as information processing, legal affairs, personnel, general affairs, accounting, and finance, which support key processes
3. External environmental risk
   Risks arising from external factors surrounding the business
4. Other risks that may impair the Group's corporate value

Risk Management System

The Representative Director and President is responsible for risk management in our group, and we will allocate resources appropriately in accordance with our management strategy, taking into account the location and characteristics of risks. The Director and Executive Vice President is in charge of risk management in our group, and assists the President and listens to reports on risk for prompt decision-making in case of emergency and provides advice from time to time. The Risk Compliance Committee has also been established to enhance the effectiveness of risk management. As an executive body, the Committee determines risk management policies, establishes and monitors systems, and reports to the Board of Directors.

Risk Management Process

The Risk Compliance Committee takes a central role in implementing risk management in the following processes.

1. Risk assessment
   In order to be able to respond flexibly to changes in the domestic and overseas risk environment, the Committee conducts risk assessments once a year in cooperation with each division. Based on the results of these assessments, the Committee determines and responds to risks that should be prioritized from a company-wide perspective.
2. Monitoring
   The department in charge of risk shall self-evaluate the status of implementation of countermeasures for risks, issues, and countermeasures, and in the event that countermeasures are inadequate, take corrective and corrective actions, and report the situation to this Committee. At the end of each fiscal year, the implementation status of countermeasures for risks in charge is summarized and the next fiscal year's risk countermeasures plan is prepared.
3. Review
   The Committee shall review the risk countermeasures plan and the risk response status report submitted by the division in charge of risk and issue instructions for approval or improvement as necessary.
4. Cooperation with internal audits
   The Internal Audit Office shall share matters that have an impact on the risk management of the Group, which have been ascertained during the implementation of internal audits, as well as the status of implementation of internal audits, and shall cooperate with the Committee as necessary.
5. Communication and consultation with the board of Corporate Auditors or Corporate Auditors
   The chairperson of this Committee shall contact and consult with the Board of corporate auditors or corporate auditors as appropriate regarding the risk management of the group.