Risk and Crisis Management

Basic Policy

In order to sustainably increase corporate value over the long term while working to realize a Kirei World in which all life lives in harmony, which is our purpose, timely and appropriate responses to increasingly diverse and complex risks are needed.
We regard potential negative impacts on the achievement of the management targets and business activities as a "risk," and the manifestation of such risk as a "crisis." We appropriately manage the various risks and crises that could occur across our business in accordance with the response priorities detailed in the Kao Risk and Crisis Management Policy (1. Protection of human lives, 2. Environmental conservation, 3. Continuation of operations, 4. Protection of assets).

Risk and Crisis Management System

The Risk and Crisis Management Committee establishes the management system and activity guideline for risk and crisis management. Divisions and affiliates conduct risk management by identifying and assessing risks and formulating and implementing appropriate countermeasures based on this activity guideline. Affiliated companies outside Japan are managed through business divisions. In addition, when a crisis arises an Emergency Response Team is launched corresponding to the severity of the emergency to promptly and appropriately address the crisis in order to minimize physical damages and financial losses. The Management Board reviews these efforts at regular intervals and other times as needed, and the Board of Directors approves them.

Clarifying Main Risks and Strengthening Responses

The Risk and Crisis Management Committee and the Management Board have defined 14 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. The managing divisions have established response policies for these risks and are managing their progress. Among the main risks, we designate those that would have a particularly large impact on our management and for which we need to strengthen our responses as "corporate risks." Once a year, the Management Board selects risk themes and risk owners (Executive Officers) based on internal risk survey analysis, analysis of the external environment, and informational interviews with management. The risk owners establish response teams to continue examining the risks, and the Risk and Crisis Management Committee meets four times a year to manage their progress.

Corporate Risks and Main Initiatives

Theme: Pandemics

Details of risks

Risk including damage to employee health and temporary business suspensions occurring due to the long-term effects and infectious mutant variants of the global COVID-19 pandemic

Main initiatives

  • Held a meeting of the Emergency Response Team Headquarters (headed by the President) to implement responses with a focus on ensuring the safety of employees and their families and on the continuity of business activities
  • As crisis management measures, followed national and local government policies, and additionally implemented work systems and styles compatible with the status of infection (promotion of remote work/teleworking, restrictions on business trips, restrictions on training/events/tours, etc.)
  • Identified the status of infected employees and family members or those who have been in close contact with infected persons, and implemented care as applicable, and measures to prevent the occurrence of infection clusters
  • Held workplace vaccination drives for employees and their families
  • Strengthened infection control measures in countries and regions where infection has spread and implemented measures related to business continuity in collaboration with group companies
  • Reviewed group systems for new workstyles to further promote of business digitalization, remote work, etc.
  • Reviewing guidelines and action plans for the next pandemic based on experience with the COVID-19

Theme: Reputation risks

Details of risks

Risks that cause value and social trust in our brand to decline due to the spread of critical reviews and misinformation about Kao on social media

Main initiatives

  • Strengthen the emergency contact system used during contingencies
  • Strengthen the social media monitory system
  • Continuously strengthen internal education, and revise guidelines and the like regarding social media

Theme: Cyberattacks and protection of personal information

Details of risks

Risk of leaks of personal information from intentional acts including cyberattacks or negligence

Main initiatives

  • Create response flows in the event of an incident arising and hold drills
  • Strengthen our global framework for information security and protection of personal information

Theme: Large-scale earthquakes and other natural disasters

Details of risks

Risk of harm to employees and assets including facilities and difficulties in supplying products as a result of large-scale earthquakes and other natural disasters such as large typhoons and floods associated with climate change

Main initiatives

  • Conduct surveys of water-related risks at each business location, and strengthen physical and non-physical countermeasures
  • Conduct disaster preparedness education including verifying flood hazard maps and evacuation measures
  • Strengthen our response through emergency response drills, means of communication and BCP drills to prepare for major earthquakes and other events

Theme: Serious quality issues

Details of risks

Risks of serious quality issues arising that would cause the loss of social trust

Main initiatives

  • Strengthen company-wide response in the event of serious damage arising due to a quality problem
  • Strengthen internal awareness-rising to prevent serious quality problems from arising

Our Core of Management

Our Core of Management

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