Risk Management

ERM (Enterprise Risk Management): A reference to Group-wide risk management

SEKISUI CHEMICAL Group conducts regular monitoring based on the importance of risks and opportunities.
First, we work to gain a comprehensive understanding of the issues facing society and the Group from the regulations, soft law, and disclosure regulations in each country in which we operate as well as a variety of other means, including stakeholder engagement and dialogue with experts. We then incorporate these issues into a Group-wide risk map after taking such measures as ranking each issue based on the three axes of impact, likelihood of occurrence, and ripple effects on the value chain. With the participation of the chairpersons of each subcommittee, the Group-wide Risk Review Subcommittee, which meets once a year, deliberates on each issue. The Subcommittee identifies and prioritizes short-to long-term issues that may pose risks or opportunities for the sustainability of society as well as the sustainable growth of the Group itself.
The issues identified are then discussed by the Sustainability Committee and approved by the Board of Directors. Issues that are designated as key issues are reflected in the strategies and action plans of the Group and each divisional company. Turning in particular to Group-wide major risks that have a high possibility of leading to serious incidents, SEKISUI CHEMICAL Group has made it mandatory to conduct assessments on risk management activities by organization. In this manner, we are working to prevent the occurrence of serious incidents.