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

Risk Management Committee

The Company has a Risk Management Committee consisting of approximately 20 members, including our directors, corporate officers, and department managers. 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 2022, in addition to the 3 meetings held by the Committee, secretariat held the meetings every month. At the secretariat meeting, the members discussed risks about production, quality control, information leakage and strengthening measures against cyber attacks, and the discussions are shared with all Committee members to enhance risk response. In addition, the Committee members are formulating risk management issues that should be focused on in FY2023 and beyond.

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

Conduct comprehensive disaster prevention drills(October 2022, Shin-Etsu Chemical Takefu plant)Conduct comprehensive disaster
prevention drills
( October 2022 , Shin- Etsu
Chemical Takefu plant)

Conduct blind disaster prevention drills( June 2022 , Shin- Etsu Chemical Naoetsu plant)Conduct blind disaster
prevention drills
( June 2022 , Shin- Etsu
Chemical Naoetsu plant)