[Important Issues] Risk Management

To identify and control important risks, the Nippon Kayaku Group implements division risk control and the top five risk control activities throughout the year are as follows.
The division risk control activities encompass seven groups. From the perspective of the operation of business, these groups identify risks that may significantly affect business activities and discuss measures to address these risks.
The top five risk control activities cover the companies of the Nippon Kayaku Group, including plants, laboratories, pharmaceuticals branches and offices and overseas affiliates. For the activities, five risks that are especially important from the perspectives of the offices and business sites are selected and measures are discussed.
The risks identified by the groups and sites and measures to address them are reported to the Internal Control Management Division, the administrative office of the Risk Management Committee. The Internal Control Management Division comprehensively understands and analyzes risk trends. Decisions regarding important risks and measures to address them are made after discussion by the Risk Management Committee. Progress and activities are reported biannually to the Sustainable Management Meeting and the Board of Directors.

The Nippon Kayaku Group sees a need to accurately understand the risks and opportunities involved in its sustainable management to mitigate risks, seize new business opportunities and leverage these opportunities for the growth of the business.
In 2022, the Nippon Kayaku Group disclosed information based on risks and opportunities relating to key sustainability issues and TCFD recommendations. We will seek to resolve environmental and social problems through our business operations in pursuit of the realization of a sustainable society and the continued improvement of corporate value.
We will continue to review risks and opportunities on a regular basis and seek to improve our information disclosure both qualitatively and quantitatively in an effort to properly keep up with the diversification of business activities and the changes in environmental and social issues.

Nippon Kayaku usually protects corporate information and continues to implement information security initiatives in compliance with the Code of Conduct for information handling in the Nippon Kayaku Group Charter of Conduct and Code of Conduct. We strengthen information security throughout the Company by controlling and monitoring information security across the board on an ongoing basis and devising programs to prevent data leaks and illegal data acquisition by third parties. Based on the company-wide Corporate Information Management Regulations, all employees are periodically provided with information security training and each of our offices designates a corporate information manager to establish its own rules and regulations. In this way, we strive to increase every employee’s awareness of information security.
As a measure against cyberattacks, all employees participated in two drills for defending against quasi-targeted e-mail attacks in FY2022. Subsequently, feedback about the results was provided to employees who also received tips for how to identify targeted e-mail attacks and to avoid risky behaviors like opening attached files to increase their awareness of information security. There were no cases falling under specific complaints concerning customer privacy violation or the loss of customer data in FY2022.

As part of the activities to increase risk awareness and implement the PDCA cycle to mitigate risk, the Nippon Kayaku Group provides risk management education to all of its executives and employees (including contract employees and part-time employees) and temporary employees. Also, a separate risk management training session is organized for new hires, newly appointed managers and Japanese expatriate employees being assigned overseas.

We have established our Risk Management Regulations and BCP Manuals, among others, in preparation for risks that could have a serious impact on corporate activities in an effort to enhance our risk management system.
The Risk Management Regulations were set forth in FY2022 by modifying the Risk Management Manual, which was formulated in FY2000 with the aim of appropriately managing and addressing all kinds of risks surrounding the Nippon Kayaku Group.