Risk Management
Basic Concept
The Fujibo Group strives to ensure sound management and stable earnings to achieve sustained growth by detecting various risks that may have a material impact on our business operations at an early stage and managing them in a prompt and appropriate manner when they become apparent. Hence, we consider risk management as an important matter of our business strategy and have set a basic policy for risk management.
Risk Management System
We are working on establishing and maintaining a system to identify and manage risk information pertaining to the entire group. In our Risk Management System, we have established the Risk Management Committee to collect and analyze information on various risks surrounding the group and to take measures when risks become apparent. Depending on the nature of risk, the committee consults with internal and external experts to take action from a more specialized perspective.
Risk Determination Process
The Risk Management Committee addresses development of a process or system to prevent risk occurrence while visualizing and identifying potential material risks. Specifically, we identify material risks and assess their impact and frequency of occurrence in accordance with the following process:
- Determine materiality of risks through risk analysis;
- Develop a plan to manage each risk;
- Evaluate and improve the plan afterward and implement continuous measures.
By continuously implementing the PDCA cycle of countermeasures, evaluation, and improvement in the risk management process, we believe that we can respond to risks more effectively.
How to Deal with Material Risks
Based on the findings of internal audits and other factors, we identify “material risks” every year from the perspective of necessity of measures and the degree of impact on corporate management and society. The material risks in FY 2022 are as below: For these risks, respective risk handling departments have taken necessary measures:
Material Risks
- Unusual changes in financial condition, business results and cash flows;
- Risks associated with important contracts;
- Dependence on particular products and customers;
- Risks concerning intellectual property;
- Legal restrictions;
- Product liability;
- Impact of natural disaster or power outage, etc.;
- Impact of infectious diseases such as COVID-19;
- Impairment loss on fixed assets;
- Risks associated with climate change;
- Risks associated with securing human resources.
Business Continuity Plan
In the event of a major natural disaster, pandemic caused by an epidemic, large-scale terrorist attack or riot in Japan or overseas, war, or any other incident, accident, or problem that seriously interferes with the Group’s business operations, we will take the following actions to ensure the safety and security of its employees while continuing its business operations smoothly, ensuring an early recovery and a stable supply of products and services, and supporting the recovery and reconstruction of local communities and customers. In an emergency, we have established an emergency headquarters and a system to respond quickly andappropriatelyin cooperation with related departments.
Both the Polishing Pad Business and the Industrial Chemicals Business are establishing multiple business sites, which is a key component of the business continuity plan (BCP).
