Risk Management
Risk Management System of Toyo Seikan Group
We have been performing risk management based on the “Rules for Group Risk and Crisis Management.”
The Group Risk and Compliance Committee and other relevant parties check the status of the group-wide risk management and take improvement and preventive measures.
Each group company has its own framework to promote risk management, under which it formulates the basic policy and plan of its risk management and conducts a review of its company-wide risk management status.
Risk and Compliance Framework
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Significant risks
The following are the major risks that the Toyo Seikan Group recognizes as potentially having a significant impact on its business performance, financial condition, and management.
- Natural disaster, infectious disease and accident risks
Business continuity and recovery from natural disasters / Infectious and communicable diseases / Occupational accidents and health and safety - Compliance risk
Compliance / Human rights violations and discrimination - Business management risk
Fluctuations in economic conditions / Fluctuations in production costs / Procurement of raw materials / Intensifying price competition / Research and development (R&D) / Investment and lending (Corporate acquisitions / capital participation / capital investment /etc.) / Digitalization / Customer credit concerns / Recruitment and development of talent / Litigation / Overseas operations - Information security risk
Leakage of personal information / Leakage of trade secrets and other confidential information / Cyberattacks and hacking by viruses - Financial and accounting risk
Financing / Changes in accounting standards and tax systems - Manufacturing and quality risk
- Environmental risk
- Country risk
For more details on significant risks, please refer to Annual Securities Report for Fiscal 2024(PDF pages 43 to 48).
Enhancing Risk and Crisis Management Framework
To address the risks and crisis events surrounding the Toyo Seikan Group and to prevent the occurrence of risks that could impact the continuity of business activities, the Group has established the Risk & Crisis Management Committee as an organization to strengthen risk and crisis management. Additionally, the Group Risk & Compliance Committee oversees risk, crisis management, and compliance across the entire Group. The Risk Management Administration Office serves as the secretariat for both committees. These committees share information on social trends related to risks, monitor responses to critical risks, and implement improvements and preventive measures. Furthermore, The Company and its group companies develop crisis management regulations and response manuals, compile risk management statuses, and report to the committees under their respective management systems to stabilize the management foundation. In the event of a crisis, The Company and its group companies prioritize the protection of human life, minimize damage, and promptly restore and continue business operations through the formulation of Business Continuity Plans (BCP), thereby promoting the strengthening of risk management systems.
Activities for FY2024 and Activities Planned for FY2025
In fiscal year 2024, as part of risk management, we conducted an assessment of the current status of major risks within our group companies and reviewed the formulation of BCP.
Specifically, we analyzed the likelihood and impact of these risks on each company’s operations and evaluated the extent to which they are prepared to respond. This process involved participation from 11 group companies. Through this risk analysis and evaluation, each company has clarified the priority of risk responses and is steadily advancing risk management based on a risk-based approach.
We will place high priority on the following five items in the Group’s risk and crisis management activities for the current year.
- Issuing risk-related information and alerts to its group companies
- Confirmation of the status of risk management activities in each group company
- Conducting education and training programs aligned with risk trends
- Formulate and disseminate our risk management policy
- Raising awareness and ensuring proper operation of the internal whistleblowing system (consultation desk)
Risk Management Activities of Group Companies
Activities for FY2024
Regarding BCP measures
Toyo Seikan
In March, Toyo Seikan conducted a company-wide BCP drill involving all business locations, simulating a scenario in which multiple factories were simultaneously affected by flooding caused by a linear rainband from a typhoon. Each business site and head office department followed instructions issued from the headquarters, which was set up online. Based on the established BCP, they reported damage status and confirmed decision-making processes for recovery using the disaster prevention portal site "BCPortal."
Toyo Kohan
In November, assuming a fire occurred at the electronic materials factory of the Kudamatsu Plant, a drill was conducted divided into initial BCP for fire initial response, and business continuity BCP covering from damage reporting to countermeasures and recovery.
Mebius Packaging
Mebius Packaging partially revised the disaster response manual and newly established basic action guidelines, conducting BCP drills in February and March that assumed wind and flood damage.
Lecture by occupational physician on "Current status and future trends of chemical substance management" conducted
On March 12, TOMATEC Kyushu Factory held a lecture by an occupational physician titled "Current Status and Future Trends of Chemical Substance Management." The talk covered essential topics for daily safety and health activities, including the proper use of protective gloves, conducting risk assessments using the Ministry of Health, Labour and Welfare's recommended tool "CREATE-SIMPLE," and the inspection of local exhaust ventilation systems. We will continue various initiatives to broadly promote and expand efforts in chemical substance management.
