As for risks that harm the Hodogaya Chemical Group, including illegal conduct, poor quality, natural disasters, infectious diseases, and information leaks, the Group has created its own risk management system.
In order to maintain and increase corporate value, fulfill its social responsibilities as a company, and generate sustainable growth for the Group, efforts are made to raise the risk awareness of not only officers but all employees and promote risk management by all employees.
The Hodogaya Chemical Group has a Risk Management Committee in place, in accordance with the Risk Management Committee Rules.
The Committee holds regular meetings to share risk awareness, develop measures to reduce risks, review the progress of such measures, and take initiatives to minimize damages based on the Crisis Management Regulations, across the Hodogaya Chemical Group as a whole.
The Committee provides and reports on the details of their discussions to the Board of Directors and the Management Committee.
Risk management structure
Risk Classification
| No. | Classification |
|---|---|
| 1 | Sales risk |
| 2 | Purchasing and procurement risk |
| 3 | Manufacturing risk |
| 4 | Research & Development and intellectual property risk |
| 5 | Environmental risk |
| 6 | Strategic risk |
| 7 | Financial risk |
| 8 | Compliance risk |
| 9 | Legal, regulatory, and system revision risk |
| 10 | Operational risk |
| 11 | Information system and information leak risk |
| 12 | Human risk |
| 13 | Tangible asset risk |
Risk Evaluation Procedures
* In particular, risks that impede KGI/KPI are recognized as Key Risk Factors (KRFs)
For the current fiscal year, the Risk Management Committee recognizes the following as overall risks.
Deliberations by the Risk Management Committee in FY2023 were primarily regarding such issues as sales risk, manufacturing risk, purchasing and procurement risk, which are based on the risk management cycle depicted in the figure to the left.
The Hodogaya Chemical Group recognizes that keeping company information classified and ensuring information security are the basics in business and one of our social responsibilities.
We have established Information Security Policy in which the appropriate acquisition, use, disclosure, and management of information, information protection activities, security measures, and compliance with applicable laws and regulations, including Unfair Competition Prevention Act and regulations on insider trading, are specified.
Also, we conduct training for all personnel to increase their awareness of information security.
IT Planning & Administration Department
T.M
As a member of the IT Planning and Administration Department, I am involved in not only maintaining and operating systems but also raising employees’ awareness of information security. Not simply relying on systems countermeasures, we regularly provide information and work to maintain and raise awareness by conducting annual practical training using simulated phishing emails so that each person views information security as something that involves them. In addition, we try to create an environment that makes it possible to promptly respond to events, including emergencies, by making it easy for people to consult and seek advice even regarding minor points during routine operations. We will implement various initiatives with the goal of further improving information security, which supports the Hodogaya Chemical Group’s business activities.