Risk Management

Policy of Risk Management

Basic Policy

Idemitsu Group strives to stabilize its management by proactively recognizing and evaluating various risks associated with its business activities and taking appropriate measures in accordance with those risks. At our group, we classify risks associated with our business activities into two categories: “Operational Risk” and “Business Strategy Risk” and promote countermeasures against them. “Operational Risk” is the risk of impeding business execution that causes losses and yields no profit. Risks under this category are typified by accidents, disasters, non-compliance, business errors, product defects, customer complaints, environmental pollution, system failures, terrorism, and labor problems. The term “Business Strategy Risk” refers to risks associated with business activities that exclude “Operational Risk” and significantly affect profit or loss. In addition to risks associated with current business strategies such as investments and finance, this category includes risks associated with the future business environment.

  • Risk arising from changes in international affairs and the economic environment
  • Risk arising from changes in the external business environment (market prices of products, procurement conditions, country-specific circumstances and foreign exchange rates)
  • Risk associated with climate change and environmental regulations
  • Risk associated with business investments
  • Risk associated with legal and regulatory compliance
  • Risk associated with intellectual properties
  • Risk arising from natural disasters and accidents
  • Risk associated with the management of personal information
  • Risk arising from the spread of COVID-19
出光興産, DFF Inc.

Risk Management Promotional Framework

Enterprise Risk Management Committee

The Enterprise Risk Management Committee, which is supervised by the Board of Directors, handles “Business Strategy Risk” and is tasked with the determination of risk management policies associated with Group operations and monitoring the status of risk management. With the President serving as chairman, committee members mainly consist of Executive Officers and heads of relevant divisions. In principle, this committee meets once every six months and requests reporting from other committees with regard to major risks categorized under “Operational Risk” or “Business Strategy Risk.” Also, the committee provides the Board of Directors with updates on the status of its activities once a year in principle.

Risk Management Committee

Our group has established the “Risk Management Committee” tasked with handling “Operational Risk” and is promoting company-wide risk management by taking necessary measures in a timely and prompt manner. The committee chairman is appointed by the Management Committee from among the Directors or Executive Officers, while committee members consist mainly of officers of general affairs divisions; General Affairs, Safety Environment (HSSE) & Quality Assurance, Finance, Legal, Corporate Planning, Human Resources, Public Relations, and Internal Control. The committee holds periodic meetings on a quarterly basis to specify major risks for the entire Group, formulate countermeasures, and identify signs of their emergence while assessing novel types of risks. In addition to deliberating on these and other matters related to the management of Operational Risk, including measures for risk prevention and managing the progress of such measures, the committee is responsible for submitting its conclusions to the Enterprise Risk Management Committee.

出光興産, DFF Inc.