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Risk Management

Risk Management Policy

We adapt from a global viewpoint to changes in the management environment surrounding our group and to the diversification of risks and will foster risk management to reduce or avoid the loss of managerial resources, thereby improving our corporate value.

Action Guidelines

  • We identify the risks that might hamper the achievement of our management targets from a global and long-term viewpoint and strive to prevent the actualization of these risks in a planned and organization-based manner.
  • In the event that such a risk materializes, we strive to minimize the impact on our stakeholders, maintain their trust and prevent the recurrence of similar incidents.

Promotion System

Our group has established and operates a risk management system that unifies "risk management," which prevents risks before they occur, and "crisis management," which deals with significant risks when they arise. The President is in charge of risk management, and the executive officer in charge of promoting it is in charge of promotion. In addition, we have established a Risk Management Committee (holding regular meetings twice a year and extraordinary meetings as needed) as one of our expert committees, chaired by an executive officer appointed by the President, to implement company-wide risk management. Important decisions made by the Risk Management Committee are reported to the Board of Directors through the Management Meeting.
In fiscal year 2025, the Risk Management Committee held two meetings to report and discuss strategic risk management, responses to priority risks, and updates to the risk map.

Integrated Risk Management

To identify and mitigate risks that could significantly impact business survival and goal achievement, we implement risk management based on the following processes. We also assess ESG risks, including climate change and human rights.

A diagram illustrating the risk management process, which consists of risk recognition, risk analysis, risk assessment, priority risk determination, countermeasure planning, implementation, monitoring, and review.
A diagram illustrating the process of analyzing risk maps based on impact and likelihood, adding the status of countermeasures, and determining priority risks.

Regarding business risks, we identify specific risks for each business process and evaluate whether they will have a significant impact on business continuity or goal achievement from a company-wide perspective by analyzing their impact, likelihood of occurrence, and the status of countermeasures. Risks that are assessed as requiring focused attention are designated as "priority risks," and a responsible department is assigned to promote risk reduction activities, while the Risk Management Committee monitors the progress of these activities.
In fiscal year 2025, we identified four priority risks in both Japan and globally and worked to mitigate them. Furthermore, with the aim of incorporating strategic risks into integrated risk management from a management perspective, we defined strategic risks as "risks that hinder the achievement of the goals of the medium-term management plan" and conducted an identification of risk elements.
Furthermore, among the risks of our business, themes such as (1) global affairs and exchange rate fluctuations, (6) procurement, and (9) information security are also included as key initiatives in our "priority management issues" and are recognized as important issues in sustainability management.

<Business risks>
  1. Risks related to global affairs and exchange rate fluctuations
  2. Risks related to the business environment
  3. Product Quality Risks
  4. Risks related to technological development
  5. Risks related to intellectual property
  6. Procurement risks
  7. Risks related to natural disasters and infectious diseases
  8. Environmental risks
  9. Information security risks
  10. Risks related to securing talent
  11. Compliance risks
  12. Risks related to business investments
  13. Risks related to human rights violations

For details on each item, please refer to the securities report via the link below.

Response during a crisis

If a risk materializes and poses a serious threat to business continuity, the president will promptly form a crisis response team as the highest-ranking officer and establish a system for responding to emergencies. The crisis response team will be responsible for gathering and analyzing information, deciding on and issuing countermeasures, and contacting and coordinating with relevant organizations to respond to emergencies. In addition, in the event of a major incident, accident, or disaster, we have established an emergency contact email system that allows the affected department to simultaneously notify executives, the business management office, and relevant departments, striving to prevent delays in the initial response.

Business Continuity Management (BCM)

We are implementing business continuity management activities that anticipate various scenarios during large-scale disasters such as earthquakes. To minimize damage even in the event of a large-scale disaster, and to quickly resume production in the event of an operational shutdown to maintain our customers' supply chains, we have formulated business continuity plans (BCPs) across the entire group, defining initial response systems and recovery procedures, and are also working on disaster prevention and mitigation by regularly conducting BCP drills.
Furthermore, we are continuing our efforts to develop and maintain systems to prepare for future unforeseen circumstances, including infectious diseases such as COVID-19.

Key initiatives related to Business Continuity Planning (BCP)

Each department has developed a Business Continuity Plan (BCP), which defines the initial response system and recovery procedures.

<IT Departments>
To ensure business continuity during disasters, we are continuously working to minimize damage to IT systems and shorten the recovery time.
Specifically, we minimized damage by relocating the system to a highly robust data center, and to shorten the recovery time, we are implementing cloud backups for our domestic and international group companies, enabling system recovery and startup in a damage-free environment. We are currently proceeding with the migration of the system itself to the cloud, further strengthening our business continuity.
Furthermore, we regularly conduct more practical education and training to ensure that system recovery and startup can be handled reliably in the event of an emergency.
<Procurement Departments>
For critical purchased items such as materials and components, we are implementing measures such as multiple purchasing. Because the materials and components necessary for manufacturing our products are diverse, we share objectives with each of our business partners and ensure a system that complies with our Business Continuity Plan (BCP) through initiatives across the entire supply chain.
<Engineering Departments>
In preparation for the Nankai Trough earthquake, we are implementing seismic reinforcement measures for our buildings and related facilities. We have created a checklist to enable prompt building inspections after an earthquake, and we are promoting building inspection training at each location. After entering the buildings, the recovery team will inspect the infrastructure and related facilities according to the procedures outlined in the Business Continuity Plan (BCP), and carry out recovery activities in order of priority.
<Business Departments>
Each business unit sets target recovery times for its main products in its Business Continuity Plan (BCP), and develops action plans for recovery teams to establish a system that enables early recovery.
<Implementation of BCP training>
We conduct training every December to ensure that we can quickly resume operations in the event of a disaster. The training involves developing recovery plans for major businesses, forming recovery teams, and carrying out recovery activities, all with the aim of improving the effectiveness of our Business Continuity Plan (BCP). We also conduct training to simulate situations where the company LAN is unusable, including communication with the disaster response headquarters using IP radios and information sharing via the company portal.

Main initiatives related to disaster prevention and mitigation

<Company-wide disaster prevention drill implemented>
In anticipation of a massive Nankai Trough earthquake, we are conducting a company-wide disaster prevention drill involving our domestic group companies. The drill includes evacuation exercises, employee safety checks, initial firefighting activities, and assessment of damage to facilities and equipment, in preparation for a swift recovery in the event of an emergency.
Scenes from the evacuation drill
Scenes from headquarters operations training
<Response to wind and flood damage>

In recent years, in response to increasingly severe wind and flood damage due to climate change, we will strive to minimize damage by creating disaster-specific timelines for each business location and conducting regular annual checks of regional hazard maps.

  • Measures to prevent the outflow of hazardous materials during floods
    • In order to prevent the leakage of chemicals, oil, etc., in the event of flooding caused by heavy rains, etc., we conducted an investigation into the flood risk at each of our group's locations.
    • At locations at risk of flooding, appropriate measures are being taken, such as storing hazardous materials in airtight containers, installing sandbags, and creating and implementing disaster prevention procedures.
<Disaster Relief Communication Equipment: Introduction of Starlink>

To ensure inter-site communication in the event of communication failures during disasters, we have introduced the Starlink satellite internet service to all of our domestic locations, in addition to our existing satellite phone system.
By diversifying communication channels, we are strengthening our system by enabling the collection, provision, and emergency notification of disaster information.

Starlink antenna installed at the base
<Disaster preparedness awareness for employees>

To raise employees' disaster preparedness awareness and contribute to business continuity, we have established a "Disaster Preparedness Awareness Month" and are regularly educating them on guidelines for actions to take during disasters.

Disaster Prevention Awareness Month: Earthquake Simulator Experience Event