Risk Management

Risk Management process

To respond to changes in the environment accompanying the expansion of its business domains, the Group has established a Risk Management Committee and is building and maintaining a company-wide risk management system to regularly detect, identify, evaluate, control, and monitor the risks borne by the Group. The committee discusses individual risk reduction measures, evaluates their effectiveness, and reports the results to the Board of Directors.

Risk Management process

Business risks

The Company acknowledges the following items as major risks that may affect its management, business performance, and other aspects of its operation.

Risk item Theoretical Risk Scenarios
1. Business environment
  • Changes in the domestic and international political and economic environment, including security concerns (fluctuations in raw material and fuel prices, etc.)
  • Changes in the business environment resulting from economic trends, consumption trends, changes in societal structure, and climate change
  • Changes in the conditions of competition with other companies in the same or different industries
2. Food safety
  • Occurrence of issues related to the safety and quality control of products handled or developed by the Company due to external factors,and the resulting impact on the production and distribution of food products
3. Legal Regulations
  • Occurrence of any event that violates the Food Labeling Act, Antimonopoly Act, Subcontract Act, or other laws and regulations that must be complied with when conducting business
4. System Outage
  • System outage due to unforeseen natural disasters
  • System outage due to unpredictable virus infections or hacking activities
5. Disasters and Crises, etc.
  • Prolonged restoration due to a large-scale disaster affecting a wide area, etc.
  • Suspension of operations or stagnation of supply chains due to the spread of infectious diseases caused by new viruses, etc.
6. Climate change
  • Fluctuations in transportation and storage costs and procurement and purchasing costs due to climate change, greenhouse gas emission regulations, etc.
7. Changes in Customers
  • Reduction or termination of transactions due to intensified competition, policy changes, restructuring, or other changes involving customers
8. Irrecoverable Debts
  • Inability to collect debts due to customer credit concerns caused by unforeseen circumstances
9. Investments in/Impairment of Fixed Assets
  • Impairment losses due to changes in the business environment that may prevent the Company from earning the profits it expects into the future
Please refer to “Business risks” in the Securities Reports for details.

Sustainability