Investor Relations

Ensuring Business Continuity

Business Risk Control Activities and TOP 5 Risk Control Activities

The Nippon Kayaku Group conducts Business Risk Control Activities and TOP 5 Risk Control Activities as part of our risk management activities.
 In Business Risk Control Activities, the nine business groups and business divisions each identify risks that could have a major impact on business activities from the perspective of business operation. They consider responses and measures to implement and review these at the end of March every year.
 TOP 5 Risk Control Activities target plants, research laboratories, pharmaceutical branches and sales locations, and Group companies, including overseas Group companies. The top 5 most critical risks from the perspective of each business location on the frontlines are identified, and responses and measures are considered and reviewed.
 We comprehensively ascertain and analyze risk trends from these two perspectives and use the information in management decision-making after it has been examined by the Risk Management Committee.

Risk Management

Business Risks (included in the annual securities report submitted in June 2021)

Business risks in the Nippon Kayaku Group are categorized into risks related to management strategy and risks related to business continuity (risk management). We have also added a new category for risks related to compliance.
 Important risks as a chemical manufacturer are shared across our businesses. They include “1. Risks related to product quality” and “3. Risks related to raw materials procurement.” We have reclassified these into the category of risks related to management strategy, from the perspective of Group management.
 On the other hand, if the risk of fraud and illegal activities increases in relation to ensuring customer safety, proper quality management, and compliance with laws and regulations, this could result in large losses and seriously damage to trust in our company. Another issue of importance to our Group is recognizing the risk of harassment and other negative behavior resulting from different values due to diversity among employees, and taking steps to prevent such behavior. We have therefore added risks related to compliance from the perspective of such risks.

Business Risks Appearing in the Annual Securities Report Submitted in June 2021

*For details of reach risk, see pages 14 to 18 of the Annual Securities Report.

Annual Securities Report (Japanese)

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