Risk Management
For sound business practices, we identify and analyze the many types of risk facing management, and we strive to take the necessary steps to control them. The business risks facing our company and ways of managing these risks have grown more diverse and complex. In response, we have established the Risk Management Subcommittee under the Corporate Governance Committee with the goal of monitoring risks and addressing risk management issues that are shared across the company. Specifically, we prepare for the rapid restoration of operations in case of an emergency by developing business continuity plans (BCPs) for every domestic plant based on the scenario of a massive earthquake or other natural disaster.
Initiatives to Strengthen Corporate Governance
In order to strengthen the management system that can promptly respond to changes in the business environment, the officers in charge of business execution are delegated executive officers (term of office is one fiscal year), and the Executive Board, which consists of operations directors and above, has been established as a deliberative body in advance of the Board of Directors to clarify roles and responsibilities regarding business execution and to speed up management decision-making. The Board of Directors has been streamlined by reducing the number of its members. However, we have introduced a system of multiple outside directors and have built a system that focuses on the direction of management and the monitoring and supervisory functions of the directors' business execution.
In recent years, we have been conducting self-evaluations of the effectiveness of the Board of Directors every fiscal year to provide an opportunity for periodic system reviews, and promoting the establishment of global governance in light of the importance of managing not only Japan but also the entire Group, including overseas companies.
Internal Control System and Risk Management System
We have established a Corporate Governance Committee consisting of a Compliance Officer and a Risk Management Officer. The purpose of the committee is to ensure compliance with various laws and regulations in the promotion of business activities and to build a sound business operation system that can appropriately deal with possible business risks. In addition, a Compliance Subcommittee and a Risk Management Subcommittee, each consisting of officers and practical staff members, have been established to develop a compliance and risk management system.