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 has 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 Management System

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:

  1. Determine materiality of risks through risk analysis;
  2. Develop a plan to manage each risk;
  3. 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 the fiscal year 2021 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

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 Business Continuity Plan 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 and appropriately in cooperation with related departments.

COVID-19 and BCP

While the Group has been affected in various ways by the spread of COVID-19, we have established a Risk Management Committee to take measures from the perspective of business continuity, giving the highest priority to our employees' health. We are also engaging in social contribution activities for healthcare workers.

Since the outbreak of the pandemic and up to the end of October 2021, there has been no suspension or stoppage of production, closure of business sites, or other business operations due to the outbreak of COVID-19 infection, including at overseas sites.

March 2020

  • Established a Crisis Management Committee, which took the lead in collection and analysis of information on impact associated with the spread of the infections on the Group's business management and decided on response policies and various measures.
  • In order to maintain stable production at each business site, the Management Committee instructed the company to review the supply chain, build up inventories of raw materials and products, and promote automation and labor saving in production processes.

April 2020 to October 31, 2021

  • Notified the whole group of what to do when any employee is infected or becomes in close contact with the infected.
  • Adopted a work from home system for all employees at business sites in metropolitan areas to have them work from home in principle.
  • Conducting sales activities, meetings and training online.
  • Each month, the Board of Directors of each operating company identifies potential and actual risks from the perspective of BCP, and confirms the development and results of countermeasures against these risks.

January-March 2021

  • Donated relief supplies (underwear) to medical institutions combating COVID-19.

Other Corporate Governance Initiatives