Risk Management

Message from CRO

Committed to winning the confidence of stakeholders in a sustainable manner


The Showa Denko Group has a risk management system led by the Chief Risk Officer (CRO). Meanwhile, the importance of corporate governance in the wider world has further increased in the face of a series of corporate scandals that have occurred recently.
Regarding the business results for 2017, we deeply apologize to our shareholders and other stakeholders for the concerns and problems caused by the delay of the announcement of the results.
The delay occurred because it took us time to make a detailed examination of the transactions related to Shoko Co., Ltd., one of Showa Denko’s subsidiaries. Showa Denko will fully support Shoko in implementing improvement measures and will further enhance its internal control, deeming the strengthening of its risk management functions a management priority for the entire Group.
The Showa Denko Group faces various risks related to compliance, occupational safety, product quality, and its business activities and is required to minimize both the risks themselves and the impacts that might be felt over the Group if any of them were to materialize.
The Showa Denko Group deems “compliance with social and corporate ethical norms” a top management priority and fosters compliance-based management. We will promote a corporate culture that helps increase the alertness of all Group employees to safety, compliance, and corporate ethics and encourages them to make quick responses and conduct improvement activities for better risk management.

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. It is important to identify all risks without omission. This year we set items on which we would focus in the identification of risks, such as “information leakage,” and made a risk inventory in reference to the items.

■ Risk inventory flow chart

TOPIC Information security risks

The Showa Denko Group has its own Information Security Regulations and Personal Information Protection Guidelines to assist it in dealing appropriately with information-related risks. We also take every opportunity to help all employees understand these rules and raise security awareness among them through e-learning and Cyber Security Month activities. We are continuously enhancing information security also at our Group companies outside Japan.
As for targeted attacks, which have recently been posing a threat, we are collecting the latest information by participating in the activities of the Japan Chemical Industry Association and the Japan Petrochemical Industry Association. Further, we regularly conduct drills to reduce related risks by raising employee awareness.
Moreover, in 2018 we began measures to enhance our cyber security system.

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