Risk Management Summary
The Kurita Group defines risk as any event that makes its sustainable growth and enhancement of the Group’s corporate value uncertain. We identify risks that need to be addressed while minimizing losses and damage caused by risks by taking measures to avoid and mitigate risks, so that we can continue securing business opportunities for further growth.
The General Manager of the Corporate Planning Division is the officer responsible for monitoring risks and implementing risk management within the Kurita Group. The General Manager regularly conducts risk analysis and evaluation to relevant companies, conducts ongoing monitoring, and takes steps to prevent risks from occurring. If a risk that could have a serious impact on management occurs, the General Manager formulates systems with those responsible for responding to the risk, obtains approvals from the president, and immediately issues orders. Those responsible for responding to the risk promptly take actions and report to the president and the General Manager of the Corporate Planning Division regarding the status of the effects of the risk, remediation, and measures to prevent reoccurrence.
Among serious risks, those related to compliance are the responsibility of the head of the E&S (Environmental & Social) Committee, while those related to hygiene, safety, and disasters are the responsibility of the head of the Safety / Hygiene Committee of the Headquarters. The general manager of each business division is responsible for responding to risks directly associated with day-to-day business operations. Also, responding to commonly seen risks relating to quality, the environment, information security, export controls, and so on are handled by the respective divisions responsible.
The General Manager of the Corporate Planning Division, the head of each committee, and the general managers of business divisions report periodically to the Board of Directors on the status of risk management implementation, and report as necessary to the Board of Directors and the Audit & Supervisory Board on the occurrence and effects of serious risks. In addition, the Board of Directors of each Group company regularly report to Kurita,s Management Division and Business Division on the progress of risk management. Monitoring of the execution status and improvement status of risk management is conducted by the Internal Auditing Department.
Risk Map - Based Management
The Kurita Group continues to manage operations using a risk map. After setting envisioned risks for each risk category, such as business environment, disaster, etc., the Corporate Planning Division evaluates the probability/ frequency each risk will materialize and its impact and then creates a "Company-wide risk map" by identifying critical risks.
The Company’s divisions, business divisions, and consolidated subsidiaries create and implement "business risk maps" within the particular organization in line with the Company-wide risk map. With the business risk map, entities clearly state monitoring indicators and risks that should be dealt with in advance and develop risk countermeasures, such as preventive measures and the response when the risk materializes. Furthermore, the Company verifies the impact by qualitatively and continually monitoring indicators and works to improve the precision of risk management.
Kurita Water Industries Ltd. and its domestic Group companies not only have formulated a business continuity plan (BCP) in order to maintain operations and quickly recover in the case of a major earthquake or outbreak of a new strain of flu but are also strives to manage risk. For fiscal 2018, having classified efforts into ones to ensure "employee safety," ones to "restore the Company’s facilities and plants," and ones to "support restoration of its customers’ facilities and plants" in accordance with the distinguishing aspects of the Company and its domestic Group companies’ businesses, the Company is inspecting and making improvements to these efforts.