Governance

Risk Management

At Fujikura Kasei, we strive to ensure sound and smooth business operations by developing a management framework for preventing risks related to business as a whole and defining methods for responding to risks should they occur.

Our concept of risk management

At Fujikura Kasei, one of our most important management issues is to prevent potential crises by visualizing risks that could hinder our business operations and, in the event a significant risk occurs, to minimize the impact of that risk on our company.
Companies must address both inherent risks and a wide range of risks that vary in scale and frequency. Therefore, we have established a detailed company-wide risk management process. By taking appropriate measures for each risk and mitigating all risks, we aim to achieve sustainable growth and enhance our corporate value.

Risk management framework

We have a long-established risk management framework in place that defines specific measures for each type of risk. As part of our effort to strengthen our sustainability initiatives under the 11th mid-term management plan, the Sustainability Committee discusses and reviews potential company-wide risks as a key management issue.

Identification of company-wide risks and formulation of countermeasures for risk management

As part of our efforts to strengthen our sustainability initiatives under the 11th mid-term management plan, the Sustainability Committee has assumed overall control of potential company-wide risks as a management issue. It has clarified the risks anew from a company-wide perspective and launched initiatives to mitigate those risks.

1. Environmental analysis

Verify the environment surrounding our company from the perspective of achieving sustainable growth and enhancing corporate value.

2. Identify risks (risk identification)

Identify conceivable risks in the operational processes of each department in terms of both external and internal factors (a total of 84 categories of operational risks, financial risks, strategic risks, and hazard risks).

3. Calculate the significance of the risks (risk analysis)

Weigh the identified risks. Create a risk matrix with impact and probability on the two axes. Categorize the risks into share, avoid, accept, and mitigate, with those classified under mitigate as risks that need to be addressed. Risks other than those already covered by existing management systems are considered potential risks.

4. Company-wide efforts to mitigate identified risks

At the beginning of fiscal 2024, risks identified as requiring company-wide attention were addressed under the direction of the President. Each “risk owner” (responsible executive) clarified risk-mitigation measures when setting annual objectives, and department managers translated these measures into action plans, promoting implementation across the organization.

5. Evaluation of risk-mitigation efforts

After implementing mitigation measures during the year, each risk owner conducted a new risk analysis at the end of fiscal 2024. The results showed that several items have higher potential impact or likelihood of occurrence due to factors such as increased internal awareness and changes in the external environment.
We will continue to identify emerging risks and perform ongoing risk analyses to strengthen mitigation efforts. The progress of these initiatives will be regularly discussed and reviewed by the Sustainability Committee to further enhance our company-wide risk management framework.

Corporate disaster prevention

Corporate Disaster Prevention Committee

Oversees initiatives to develop and strengthen corporate disaster prevention measures through collaboration between two subcommittees.

Disaster Prevention Subcommittee

Supervises disaster prevention plans at each site. In fiscal 2024, a comprehensive earthquake drill was planned and conducted. The lessons learned from the drill were shared company-wide to support continuous improvements in disaster preparedness.

BCP Subcommittee

Works to develop and strengthen the company’s business continuity framework. In fiscal 2024, efforts were made to acquire knowledge for implementing an “all-hazards BCP,” with full-scale restructuring of the BCP scheduled to begin in fiscal 2025.

Information Security

We have formulated our information security policy and information security education document based on the awareness that it is essential to take measures against information risks.
The Information Security Subcommittee is responsible for promoting information security compliance. It is a company-wide cross-cutting organization led by the chairperson (director) of the Compliance Committee and composed of the general manager of the Information Systems Department and management-level members from the management and business departments in each site.
In line with the guidelines of industrial organizations with which our business partners are affiliated, in addition to other social requirements, the subcom mittee revises th e com pany’s information security education documents and otherwise engages in strengthening compliance.

Information Security Policy

Our company recognizes the importance of our social responsibility towards information assets—including customer data and employee personal information—and has established the following Information Security Policy to ensure the proper management of these assets in our daily operations.

  1. We will identify the information assets that require management within our business activities and implement effective measures to protect them, striving to maintain and enhance information security.
  2. We will comply with all applicable laws and regulations related to our information assets.
  3. We will provide training and education on the proper management of information assets to all employees, including executives, to ensure that everyone recognizes the importance of information security.
  4. In the event of an information security incident that impacts our stakeholders, including our customers, we will promptly report to the relevant parties and take the necessary countermeasures.

Fujikura Kasei Co., Ltd.
President
Susumu Kurihara