Approach

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.

Approach to risk