We define a risk as a potential negative impact on the achievement of our management targets and business activities, and define a crisis as the materialization of such a risk. Our Risk and Crisis Management Committee has established a system and activity guideline. Based on these activity guidelines, our domestic divisions and affiliates identify and assess risks, and formulate and implement appropriate countermeasures. Affiliated companies outside Japan are managed through business divisions.
In the event of a crisis, we launch an Emergency Response Team according to the severity of the emergency to minimize physical damage and financial loss. The Management Board reviews these efforts, and the Board of Directors approves them. The Internal Control Committee monitors the status and confirms the effectiveness of risk and crisis management activities.
The Risk and Crisis Management Committee and the Management Board have selected 15 main risks of special importance as risks that could negatively impact our sustainable and profitable development, and the contributions we make to the sustainability of society through our business activities. We use the term “corporate risks” to refer to those among our main risks that have a particularly strong impact on management and that require stronger response. Once a year, the Management Board selects risk topics and risk owners (Executive Officers) based on an analysis of internal risk surveys and the external environment, as well as interviews with executives. Each risk owner assembles a response team and holds deliberations, and the Risk and Crisis Management Committee meets four times a year to manage their progress.