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

  1. 1.Business risks
  2. 2.Research and development risks
  3. 3.Production and quality management risks
  4. 4.Sales risks
  5. 5.Purchasing risks
  6. 6.Finance and accounting risks
  7. 7.Personnel and labor risks
  8. 8.Environment and safety risks
  9. 9.Information management risks
  10. 10.Intellectual property, contract, and litigation risks
  11. 11.Fraud risks
  12. 12.Country risks
  13. 13.Legal risks
  14. 14.Other

(2)Risk factors not related to business activities

  1. 1.Risks caused by economic factors
  2. 2.Risks caused by social factors
  3. 3.Risks caused by political factors
  4. 4.Risks caused by scientific and/or technical factors
  5. 5.Risks caused by natural environmental factors and/or disasters
  6. 6.Other

Risk Management Committee

We have the Risk Management Committee chaired by a managing director of the Company. The committee consists of about twenty members, including directors and general managers of divisions of the Company. The Committee maintains risk management structures, establishes internal regulations, and works to identify the risks arising from the operations of the Company as well as preventing them from occuring. The Committee also promotes group-wide activities such as the development of business continuity planning, providing education and sharing information. The Committee reports directly to the Board of Directors, the Audit & Supervisory Board, and the Managing Directors' Meeting on major issues in risk management. In FY 2019, in addition to the 4 meetings held by the Committee, secretariat held the meetings every month. At the meeting, the Committee discussed risks about production, quality control, and natural environmental disasters.

Business Continuity Plan and handling in Emergencies

The Group offers a number of products with high market share not only in Japan but around the world or which used in special applications in state-of-the-art industries. 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 plant 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 2019, Shin-Etsu Chemical Takefu Plant)

Response training for large-scale earthquakes
(July 2019, Shin-Etsu Chemical Takefu Plant)