Risk Management Framework
Centered on the Global Risk Management Committee, the Nippon Sanso Holdings Group optimizes risk management activities by clarifying roles and responsibilities across the Group and evaluating these activities from a medium- and long-term perspective.
As the Global Risk Management Supervisory Manager, the Representative Director and President of NSHD has ultimate responsibility for the preparation and implementation of the risk management framework covering all Group companies.
The presidents of the operating companies are in charge of risk management in their respective regions, and have responsibility for the preparation and implementation of their respective regional risk management framework.
They oversee persons in charge of promoting regional risk management, who coordinate these efforts in each region.
NSHD in the diagram refers to Nippon Sanso Holdings.
Features
One special feature of our risk management framework is that the Global Risk Management Committee operates in unison with the Global Strategy Review Committee. We optimize Groupwide risk response by deliberating risks and opportunities in the business environment from various viewpoints while sharing identified and addressed risks in business operations within the Group.
In addition, we hold a Risk Management Liaison Meeting that complements the Global Risk Management Committee, with the aim of reviewing the risk information and risk response status of each operating company and sharing best practices.
Process
The Group identifies and assesses risks by recognizing changes in the business environment and looking at their potential to both increase and damage corporate value. From the results of this assessment, we identify the Group-wide Key Risks and conduct risk response and monitoring in accordance with our risk response policy to optimize the risk response across all Group companies.
Our risk management processes include a process for us and our operating companies, and a process for the Group-wide Key Risks that require a priority organization-level response.
Both of these processes comprise the steps of risk identification, risk assessment, risk response policy determination, risk response measure determination, response to risk, and monitoring and review.
Group-wide Key Risks
At the Global Risk Management Committee, the Group shares its recognition of and responses to risks, determines the Group-wide Key Risks that require priority Groupwide action, and promotes responses across the entire Group. The main criteria for selecting the Group-wide Key Risks are as follows:
• Risks that are to be managed from the Group management/all-company perspective with a medium- to long-term view
• Risks that impact the Group’s business foundation, or certain important businesses
In addition, we also base our selection on our materiality issues and business strategies, such as the medium-term management plan.
The Group-wide Key Risks determined at the FY2025 Global Risk Management Committee are as follows.
Our Group-wide Key Risks
| Changes in the global economy and society |
Geopolitics and supply chains, Changes in the economic climate, Advances in AI and the growing sophistication of cyber attacks, Carbon neutrality |
| Maintaining and strengthening core business |
Obsolete facilities, Strengthening technical and development cooperation, Group governance / Compliance |
| Human resources |
Securing human resources, Succession planning, Human rights / DEI |