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Risk Management


Risk management assumes various situations

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The Showa Denko Group is performing risk management in order to minimize these risks, and minimize the impact at the time of actualization.


Risk management system

We have established a risk management system around the CRO (Chief Risk Officer). Important risk-related matters are deliberated by the Risk Management Promotion Council and determined by the CSR Committee.

Risk management activities

We manage risks concerning company activities, including environmental preservation, security and disaster prevention, product quality, export control, agreements, etc., through preliminary reviews and an approval system based on internal rules and regulations. In addition, offices engage in efforts on a daily basis to minimize risks such as fires, explosions, leakages, work-related accidents, occupational diseases, poor quality products, and environmental contamination and keep their impacts to a minimum even if they should occur.

Risk inventory

Our Group has been conducting risk inventory every year, including its overseas bases. Risk inventory is conducted in the order of (1) extraction of risks, (2) assessment of potential impact, (3) planning of countermeasures, and (4) implementation and confirmation of countermeasures. We plan and implement company-wide measures against common risks chosen from the risks extracted by each section. In 2013, we addressed common risks such as earthquake risks, information security risks, and general affairs risks.

■ Risk inventory ow chart
Risk inventory ow chart

Earthquake risks

We consider factors such as the estimated frequency of earthquakes and earthquake motion in the regions where our offices are located in order to determine priority for each building and facility. We then perform seismic diagnoses and earthquake reinforcement. Moreover, since 2007, we have been working on Business Continuity Plans (BCP) as provision against earthquakes. We create a BCP promotion framework, establish basic policies, determine important operations at each business division, worksite, and major affiliated companies, and find bottlenecks related to these important operations. We also establish plans, document them, and then work to embed these efforts through education and training. All of these efforts are conducted while referring to the business continuity guidelines from the Cabinet Office. The Business Continuity Plans (BCP) that are created are reviewed as needed.

Information security risks

Showa Denko mitigates information security risks to the extent possible based on its Information Security Regulations and Personal Information Protection Guidelines to minimize damage to its business and ensure business continuity. We also take every opportunity to share information with and raise security awareness among employees through e-learning, Cyber Security Month activities, and other means and ensure that all employees understand our information security policies and regulations.
As part of our effort to strengthen systematic countermeasures against new threats to our information systems, we are continuing to strengthen countermeasures against targeted attacks and information security governance at each overseas group company. We are also taking measures to enhance data security for our PCs.

General affairs risks

Since 2009, our Group has been continuing efforts to enhance risk management of general affairs operations. Specific examples are: (1) identification of administration risks by using the “Guidelines,”, which cover operations related to general affairs from the perspective of risk management, as well as planning of countermeasures; (2) sharing of best practices and responses as well as enhancement of the database for better understanding of applicable laws; (3)conducting periodic manager meetings and general meetings (trainings) for general affairs personnel to reinforce cooperation among themselves; and (4)exchange of opinions at offices and plants. In 2015, a general meeting (training) was held to discuss compliance issues.