Management System and Activity Guideline

Kao defines risk as the effect of uncertainty on the achievement of our management targets and the execution of business activities, and “crisis” as a situation in which risk materializes.
Divisions, subsidiaries, and affiliates appropriately manage the various risks that pose various threats and crises that may occur across the management and business activities (e.g., reducing the impact of risks when they materialize and the possibility of risks materializing)., in line with the response priorities within the Kao Risk and Crisis Management Policy (1. Protection of human lives, 2. Environmental conservation, 3. Business continuity, and 4. Asset protection).
The Risk and Crisis Management Committee (meets four times a year), one of the committees under the Internal Control Committee (meets twice a year), establishes the risk and crisis management system and activity guidelines, based on the Risk and Crisis Management Policy.
Divisions, subsidiaries and affiliates manage risks by identifying and assessing risks, and formulating and implementing countermeasures based on this activity guideline. In the event of a crisis, we work to minimize physical damage and financial losses by establishing an Emergency Response Team Organization that corresponds to the level of emergency, and by responding promptly and appropriately.

As a subordinate organization of the committee, we have established the Risk and Crisis Management Promotion Council, which is held once a month. In this meeting, we disseminate the policies, systems, priority initiatives, significant risks and risk & crisis activity guidelines to divisions and subsidiaries. We also confirm and share risk management activities at each division and subsidiary and discuss proposals to the committee. The risk managers in their on-site operations of each division and subsidiary participate in this meeting.
The Management Board reviews risk and crisis management activities on a periodic basis(once a year) and as needed. This verification is approved by Board of Directors. The Internal Control Committee monitors the status of the risk and crisis management and verifies the effectiveness of management.

We promote risk and crisis management under the slogan of “Supporting Management and On-site Operations.”