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 following the response priority 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).
The Risk and Crisis Management Committee establishes the management system and activity guideline for risk and crisis management. Divisions, subsidiaries and affiliates conduct risk management by ascertaining and evaluating risks, and formulating and implementing countermeasures based on the activity guideline. 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. These efforts are reported to the Management Board and the Board of Directors at regular intervals and other times as needed.
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 growth, 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. Of these main risks, we designate risks that would have a particularly large impact on our management and that we need to strengthen our response to as "corporate risks." Once a year, the Management Board selects risk themes and risk owners (persons responsible for response to themes: Executive Officers) based on internal and external risk analysis 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.
|Theme||Details of risks||Main initiatives|
|Pandemics||Risk including damage to employee health
and temporary business suspensions
occurring due to the global COVID-19
|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
legislation outside of
|Risk of business or operations being
suspended due to drastic changes to
|Serious quality issues||Risks of serious quality issues arising that
would cause the loss of social trust
|Risk of leaks of personal information from
intentional acts including cyberattacks or
|Reputation||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
|Use of digital media||Risks arising from the release of ads and
other communications with inappropriate
expressions, stealth marketing, etc.