Risk Management

Our Basic Approach to Risk Management

As society and business environments undergo change, the risks surrounding the enterprise are becoming increasingly complex and diverse. The Soken Group has established an appropriate management system in accordance with our risk management regulations to handle risks with the potential for substantial impact on our business. Furthermore, we conduct annual reviews of our operations and risk assessments in an effort to implement improvements.

Risk Management Structure

We have established a risk management structure to mitigate risks that could negatively impact our corporate value. As the executive in charge of risk management, the President shall oversee activities related to the identification and management of risks. In the event that risks surface, we will strive for comprehensive direction and supervision of the entire Soken Group.

Business Continuity Plan (BCP)

Natural disasters such as earthquakes and typhoons, as well as infectious diseases such as COVID-19, can cause extensive damage to the personnel, facilities, and lifelines necessary for business operations. We have formulated a business continuity plan (BCP) to prevent interruption of business in the event of an emergency to the best of our ability, minimizing damage for prompt recovery and resumption of production activities. Beginning with our Emergency Response Headquarters, our internal structure has developed a comprehensive action plan, delineating responsibilities by function. It encompasses vital operations such as raw material procurement, manufacturing, logistics, and sales to ensure uninterrupted supply to our customers. Additionally, it includes critical support functions focused on verifying employee safety and gathering information from both internal and external sources. We regularly review our BCP, educating and training our employees to further improve our crisis management and business continuity capabilities.

Emergency Response HQ Organization

• Response Director: President
• Deputy General Manager: Operating Officer in Charge of Business Management
• Other Members: Operating Officer in Charge of Production, Operating Officer in Charge of Sales, other individuals appointed by the Response Director
• Administration: General Affairs Department, Business Management Department

Local Response HQ Organization

• Local Response HQ Director: Local Business Manager
• Other Members: Local General Affairs Group Manager, other individuals appointed by the Local Response HQ Director
• Administration: Local General Affairs Group Department

Information Security

The environment surrounding information management is changing drastically. Information leakage poses a risk that would significantly damage the Soken Group's competitive advantage, threatening our continued existence as a business entity. To safeguard customer data, including personal information, and internal data, such as confidential materials, we perform annual risk assessments focusing on three elements of information security: confidentiality, integrity, and availability. These assessments evaluate the potential for harm in terms of threats and vulnerabilities. We are committed to mitigating risks through continuous improvement of our protocols based on our findings.