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Governance

Risk Management

Risk Management Areas

Major risks affecting business activities are classified into financial and non-financial risks and systematically managed by subdividing each type. Financial risks include factors related to domestic and international market trends, capital flow, and value, such as economic and financial, credit, liquidity, and tax. Non-financial risks include ethical and legal issues, environmental and water concerns, and human rights issues that may arise during business operations.

Risk Management Areas
Table depicting Risk Management Areas, Financial/Non-financial Risk Types, and their Contents
Category Risk Type Content
Financial Risks Business Environment
  • Risk of loss due to fluctuations in financial markets such as interest rates, exchange rates, and commodity price changes, as well as risks that may arise in major project implementation
Credit
  • Risk of loss due to changes in the creditworthiness of trading partners
Liquidity
  • Risk of loss due to insufficient operating funds and potential losses in the funding process
TAX/Accounting
  • Risks related to taxation that may arise throughout business activities
Non-financial Risks Climate Change
  • Risk of actions and damage to corporate image in case of non-compliance with regulations due to the strengthening trend of environmental policies and related regulations
  • Risk of cost increase due to exceeding greenhouse gas emission allowances
  • Risk of negative impact on the environment from the company's decisions
Water
  • Risk of water scarcity, water availability, and water quality issues
Corporate SHE (Safety, Health, Environment)
  • Risks of safety, health, and environmental issues inherent in business activities
Ethics/Legal
  • Risk of loss due to inappropriate internal processes, personnel, and systems
Chemical Safety
  • Issues related to the use of chemical substances and product safety
Human Rights
  • Legal issues and damage to corporate image in case of labor issues such as workplace harassment, discrimination, and gender issues