Risk and Crisis Management

ERM*1 supporting strategy and execution in a time of uncertainty

Kao views the diverse and complex risks it faces as opportunities, not just threats. We introduced ERM in 2016 and have been striving to enhance risk management globally ever since. Carrying out appropriate risk management not only fulfills the conventional role of minimizing physical damages and financial losses but also supports efforts for taking on new challenges, boosts the probability of success in business, and further enhances our corporate value worldwide.

  • * 1 ERM (Enterprise Risk Management): Activities aimed at identifying and assessing all major risks in an integrated and comprehensive manner and taking countermeasures to enhance corporate value.

ERM in Kao

In Kao’s ERM, the Genba and management initiatives are powerfully integrated. We conducted a risk survey for Genba from the on-site operations perspective, interviews with management from the management perspective and analysis of the external environment to identify and assess the major risks and action issues that could hinder the achievement of the Mid-term Plan (K27). In particular, we have defined “corporate risks” as the risks that would have a major impact on management and require an enhanced response. As a result, we clarify and manage risks that management should prioritize. The Management Board decides upon risk themes and risk owners (Executive Officers), and establishes a countermeasure team to carry out initiatives. The Risk and Crisis Management Committee deliberates on the effectiveness of countermeasures and manages progress, and the Management Board reviews themes every year. These initiatives contribute to further enhancement of corporate value globally. In addition, we promote ERM with reference to the ISO31000.

This shows the corporate risks initiative process conducted in three stages throughout the year. From January to August, we conduct risk survey and external environment analysis, and from September to October, we conduct interviews with management to assess important risks and issues to be addressed. From November to December, we examine and determine corporate risks themes based on annual report.

Our Core of Management

Our Core of Management

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