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 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.
