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 comprehens ivelyidentifies and analyzes the risks for CKD as a whole, checks the status of the Operating Division’s efforts to address each risk, and encourages improvements as necessary. It regularly reports to the Risk Management Committee.
The Audit Division, the third line of risk management, monitors the appropriateness of functions of the Operating Division, the first line of risk management, and the Risk Management Office, the second line.

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 differentiated, and then evaluated and identified based on the frequency and degree of impact when they occur. Identified risks are reported to and shared at the Board of Directors.