Shin-Etsu Chemical Co., Ltd.

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Risk Management

Risk Management Regulations

The Company has established the Risk management Regulations. Comprehensive risk considered in carrying out business activities in the Company and the Group are specifically defined in a long-term perspective in the regulations. In addition, risk handling methods and a risk management system has been established.

Risks Defined in Risk Management Regulations

(1) Risk factors related to business activities
  • Business risks
  • Research and development risks
  • Production and quality management risks
  • Sales risks
  • Purchasing risks
  • Finance and accounting risks
  • Personnel and labor risks
  • Environment and safety risks
  • Information management risks
  • Intellectual property, contract, and litigation risks
  • Fraud risks
  • Country risks
  • Legal risks
  • Other
(2) Risk factors not related to business activities
  • Risks caused by economic factors
  • Risks caused by social factors
  • Risks caused by governmental factors
  • Risks caused by scientific and/or technical factors
  • Risks caused by natural environmental factors and/or disasters
  • Other

Risk Management Committee

The Risk Management Committee has been established. The Committee constructs risk management structures, establishes regulations, and works to identify and prevent potential washout of risks arising in connection with the operations of the Company. The Committee also promotes broad-based activities such as the development of business continuity planning, education, and information provision. The Committee reports directly to the Board of Directors, the Audit & Supervisory Board, and the Managing Directors' Meeting on major issues in risk management.

Handling in the Business Continuity Plan and during an Emergency

The Group offers a number of products used in special applications in state-of-the-art industries and has a high market share in products not only in Japan but around the world. For that reason, if these products cannot be supplied due to an accident or serious disaster such as a massive earthquake or fire, it will have an effect on society.
In the Company, each division and each factory is preparing for a disaster and accident and formulates a business continuity plan on the basis of the Companywide Business Continuity Management Regulations.
In addition, if a disaster or accident occurs, we will work using the structure shown below. Each of the countermeasures head office and organizations carry out emergency response and recovery support on the basis of pre-defined business standards.

System and major response operation in the occurrence of a disaster or accident

System and major response operation in the occurrence of a disaster or accident
  • Response training for large-scale earthquakes (July 2017,  Shin-Etsu Chemical Takefu Plant)

    Response training for large-scale earthquakes
    (July 2017, Shin-Etsu Chemical Takefu Plant))

Shin-Etsu Group Key CSR Issues

SDGs