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 a risk of impeding business execution and causing only losses, as typified by accidents, disasters, non-compliance, business errors, product defects, claims, environmental pollution, system failures, terrorism, and labor problems. The term "Business Strategy Risk" refers to risks associated with business activities that exclude business risk and cause 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. The Risk Management Committee is responsible for responding to "Operational Risk." The Enterprise Risk Management Committee is responsible not only for "Operational Risk" but for “Business Strategy Risk."
Our group has established the "Risk Management Committee" and is promoting company-wide risk management related to operational risks by taking necessary measures in a timely and prompt manner. Chaired by a Director or Executive Officer appointed by the Management Committee, the committee selects major risks common to the Group, discusses countermeasures, and manages the progress of these risks at quarterly meetings.
The "Enterprise Risk Management Committee" supervised by the Board of Directors determines risk management policies related to Group management and monitors the status of management. Please refer to page 52 for details on the Enterprise Risk Management Committee.