Business Risks and Uncertainties
Basic Policy
Kaneka Group has formulated a basic risk management policy to respond to potential risks in business operations, aiming for the goal of “Wellness First” to make the world healthy.
Risk Management System
Our basic risk management policy is that each division identifies operational risks and other types of risks that it may face, takes appropriate preventive measures, and responds appropriately in cooperation with other relevant divisions if a risk manifests itself.
For preventive measures against potential risks including those related to ethics and legal compliance, the Compliance Committee oversees the development and implementation of the company-wide plans.
When a risk occurs or is likely to occur, the Compliance Committee handles the risk in cooperation with the relevant divisions.
We regularly check whether the above-mentioned activities are implemented properly to prevent our risk management system from falling into mere formality, and strive to maintain and improve its effectiveness.
Business-Related Risks
Factors that may significantly affect the financial status, performance results, and cash flow status of the Kaneka Group include those described below.
- Risks related to the novel coronavirus (COVID-19) pandemic
- Risks related to the Group’s ability to maintain operational advantages and trends in the Japanese and overseas economic environment
- Risks associated with the globalization of our business
- Risks of price fluctuations of raw materials and fuel
- Risks associated with product liability, industrial accidents and large scale disasters
- Risks associated with the protection of intellectual property rights
- Impact of environment related regulations
- Risks associated with legal action
- Risks associated with information security
- Other risks
Please note that the matters described are only those that we considered risks, but that this is not an exhaustive list of risks borne by the Group.
See the Financial Section for more details.
Enhancing Crisis Management Systems
Based on our basic risk management policy, we have set forth Crisis Management Regulations that define our basic system and roles for emergency response, providing emergency examples and clarifying ranks, etc. We will continue to fulfill our social responsibility by maintaining corporate activities while avoiding and reducing adverse effects on the Kaneka Group as much as possible.
In preparation for an emergency, we regularly conduct a disaster drill and a safety confirmation system drill. We also provide employees with the Crisis Management Handbook about the initial response. This handbook explains emergency procedures: proper incident notification, instructions, consultation, and response, as well as the smooth flow of information.
Strengthening of Information Security
Information systems play a key role in all aspects of business activities.
Based on our Basic Information Management Policy and Information Management Regulations, we have put in place a risk management system at the Kaneka Group that is led by management. Within the IoT Solutions Center (Information Systems Department), we have set up an organization for information security. Through this organization, which is headed by the information management manager who is the director in charge, we appropriately manage information to avoid information leakage and other risks, and promote effective use of information and efficiency in operations.
To protect the Group’s information assets, we have introduced a global SOC(*) and strengthened our threat detection and monitoring system (which operates 24 hours a day, 365 days a year). Drawing from the knowledge of external experts, we continuously strive to enhance security levels throughout the supply chain.
In addition, we communicate our Basic Information Management Policy, Information Management Regulations, and Information Security Guidebook to all employees through training and other means to ensure that they understand and follow them, and provide e-learning and education and training on targeted attack e-mails and other topics. We also cooperate with each department and Group companies on training for information management personnel and other activities as we strive to ensure that personal information
and other data are properly managed.
*SOC (Security Operation Center): A system for monitoring and analyzing threats to information systems.
Basic Information Management Policy
- Observance of laws/regulations and rules
The trust and confidence of society and customers is the most precious asset the Group must protect.
Complying with laws and regulations, social norms, and internal regulations/procedures is the basic principle that all individuals engaged in business activities should follow. - Protection of confidential information
Confidential information concerning manufacturing processes, research, sales, etc. is the source of the Group’s competitiveness.
All individuals engaged in business activities must be fully aware of this, and must not leak such information or use it for illicit purposes. In particular, data requiring strict handling, such as personal information and information entrusted as confidential from other entities, must be identified as such and managed strictly by the person in charge of information management at each company. - Establishment of systems/structures
In order to sustain and expand the Group’s business, it is essential to make effective use of information and increase the efficiency of business operations.
In addition to establishing rules regarding information security and continuing to improve information systems to ensure safe, effective use of information, the persons responsible for information management should be determined to ensure appropriate information management. - Implementation of training and awareness-raising programs
With the strengthening of Group management and increased use of external resources, people with diverse values and ethics are involved in Kaneka’s business operations.
To ensure smooth cooperation with these members, efforts should be made to raise awareness of information security risks and to enhance and continue training on information security including ethical aspects.
