Risk Management System

To promote risk management, the Company has established risk management regulations as well as a Risk Management Committee, which is positioned as a subordinate body to the Internal Control Committee.

To address various potential risks in corporate activities, the Risk Management Committee identifies risks relevant to the Company in response to changes in the business environment, maps them according to their degree of impact and frequency of occurrence, and inspects them on a regular basis. The Company determines policies for dealing with priority risks for the Company as a whole, such as business continuity management and supply chain management, directs measures and monitors their implementation and effectiveness, and reports the activities to the Board of Directors through the Internal Control Committee on a regular basis.

In addition, the Company prepares crisis management manuals, develops methods for confirming the safety of employees, conducts educational activities on business continuity management and disaster prevention drills based on these methods, reinforces buildings against earthquakes to prevent disasters and prevent production facilities from collapsing, with the aim of preventing disasters and ensuring early recovery. In the event of a crisis such as an earthquake or other disaster, that is judged to cause extensive damage, the Company will promptly establish an emergency headquarters (headed by the President) and implement the necessary measures.