Approach to Risk Management
As we conduct a wide range of business activities on a global level, we believe that a solid risk management system is essential for implementing our business strategies.
In formulating long-term management strategies and medium-term management plans, risks are comprehensively identified and closely monitored as we conduct our business activities, while incorporating various measures to hedge risks.
Risk Management Organization and System
As an organization to supervise the overall risk management promotion, the Total Risk Management (TRM) Council meets monthly to identify and assess risks within the Group and promote risk prevention and countermeasures.
The TRM Council is comprised of eight directors including the President serving as the Chair. Each meeting includes an Audit & Supervisory Board member who attends as an observer.
Executive Officers of ID&E have the duty of conducting risk management related to the assigned duties each was given. Total Risk Management Council members consist of individuals who are at the Executive Officer level or above.
Process for responding to apparent risk
Risk Management Plan Formulation and PDCA Cycle
Based on the Basic Policies on the Development of Internal Control System established by the Board of Directors, ID&E has formulated a Group-wide Risk Management Plan and is promoting systematic risk management.
Each division identifies and evaluates risks associated with its business activities each fiscal year, formulates specific management measures to prevent risk events from materializing or to minimize the possibility of losses, and drafts a risk management plan. After compiling risk management plans for each department and discussing and formulating a Group-wide risk management plan, TRM regularly monitors the progress of the risk management plan, review the progress, issues, and future countermeasures, and implements a PDCA cycle. When a significant risk event becomes apparent, we conduct an assessment of the risk management plan, take necessary measures and improvements, and reflect them in the risk management activities of each division. In addition, the status of risk management at Group companies is reported to the TRM Council by the heads of each department, and it is monitored on a regular basis.
In the event of a crisis, in accordance with the Crisis Management Regulations, a Company-wide emergency task force or emergency task force of the relevant department is established to respond appropriately to the crisis after promptly reporting to the President (who serves as Chair of the TRM Council).
Business Continuity Initiatives
If we do not have adequate countermeasures for natural disasters as well as for epidemics and outbreaks of infectious diseases, there is a risk that we will be forced to suspend operations for a long period of time, which could result in significant losses that would have a major impact on our stakeholders. As a company involved in the infrastructure that supports people's daily lives, we believe that it is our social responsibility to continue to provide stable services. Therefore, we have established a business continuity plan (BCP) and are working to create and regularly review procedures for responding quickly and appropriately in the event of a crisis.