Risk management
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Basic Policy
CKD identifies various risks ancillary to business activities so as to ensure business continuity
and to raise corporate value, and based upon the proper assessment of such risks, undertakes
efficient and effective management activities.
Risk management system
The Risk Management Committee has been established as an organization under the direct control of the Board of
Directors. It reports the progress and results of its activities to the Board of Directors regularly to promote risk management.
We established a Risk Management Office as a subordinate organization of the Risk Management Committee and a
monitoring system by the Audit Division to strengthen our risk management system.
Specifically, the Risk Management Office supports the Operating Division in identifying, analyzing, evaluating, and monitoring company-wide risks.
For overseas subsidiaries, the Overseas Administration Division works in collaboration with the Risk Management Office to provide support. In addition, the Risk Management
Office monitors the progress of efforts by the Operating Division to address key risks, encourages improvements as
necessary, and regularly reports to the Risk Management Committee.
The Audit Division conducts audits, provides advice, and coordinates with the Operating Division, the Risk
Management Office, and the Overseas Administration Division to ensure their proper function.
Risk identification process
Each of the business divisions, Group companies, and the Head Office administration divisions identifies risks that may hinder the
improvement of corporate value and the achievement of management goals and their countermeasures. Risks are identified, and
then evaluated based on the frequency and degree of impact when they occur. Identified key risks are reported to and shared at the
Board of Directors.
Risks and Opportunities
We have a system in place that allows us to respond to the risks that may affect our corporate value, and review selected risks as
necessary. Risks are not always negative factors; some may become opportunities for further growth of the Company. We will
continue to capture such risks as opportunities and take bold actions when appropriate. As we conduct risk management and
improve our corporate value through business initiatives, we aim to realize a sustainable society.
Approach to risk
We define risks as uncertain events that may affect corporate value such as achieving management goals and social credibility as a result of changes in the external or internal environment. We view the appropriate management of risk as a vital management issue to expand our business globally, and have a risk management system in place.
