Sustainability
Risk Management
The Mitsuboshi Belting Group recognizes the importance of risk management as it aims to be a “sustainable company,” and continuously works to improve its management system. As a risk management method, the Group adopts the concept of “risks and opportunities,” which is a requirement of ISO standards. Based on this concept, the Group sets strategies, policies, plans, and targets, and promotes business activities by effectively deploying risk management.
Approach to Risk Management
- Integration of Risk Management and Business Activities
The Group makes use of the outputs of risk management activities in the practice of resilient and sustainable ESG management in response to changes in every business environment, and contributes to the realization of a sustainable society.
- Scope of Risks
In the Group’s risk management activities, non-financial adverse impacts related to human rights, compliance, safety and health, the environment, quality and similar matters are treated as risks in the same way as financial adverse impacts.
- Assignment of Responsibilities
The Group’s risk management activities are executed after clarifying the persons responsible for implementation.
- Participants in Risk Management
Risk management activities are undertaken by all officers and employees and are implemented for all business activities. In addition, to ensure the effectiveness of risk management, information on the business environment is always kept up to date, with particular attention paid to obtaining information from stakeholders.
- Maintaining and Improving the Risk Management System
The Group builds a risk management system that functions effectively and continuously maintains and improves it.
- Information disclosure
Information related to risk management is disclosed to stakeholders in a timely and appropriate manner.
Management System
The Group has established the Risk Management Committee* for the purpose of monitoring and evaluating risk management activities related to issues that have a major impact on the Company’s business activities and should be addressed by the entire Group (significant risks), as well as maintaining and developing the risk management system.
* Committee chairperson: an officer designated by the President
Committee members: persons responsible for all business divisions and affiliated companies
Each fiscal year, the Risk Management Committee determines significant risks and their corresponding organizations, persons responsible, targets, and plans. In principle, twice a year, the Committee receives reports on the status of response from the persons responsible for the corresponding organizations and deliberates on the contents. The details determined in the selection of significant risks and the details of deliberations on the response status are reported each time to the President and the Board of Directors.
The Risk Management Committee also plays a role in leading the Group’s risk management activities from the institutional side, including policies, regulations, procedures and similar matters related to risk management.
Risk management activities for issues judged by each business division and affiliated company as issues to be addressed (various risks arising in each management environment, including significant risks) are implemented by the persons responsible for each business division and affiliated company after clarifying the corresponding departments, persons responsible, targets, and plans in the annual policy document and obtaining the approval of the President. The persons responsible monitor and evaluate the implementation status on a daily basis and, in principle, report the results once a year to the President and the Board of Directors. The reported contents are deliberated, and instructions are issued as necessary.
Risk Evaluation
In the process of selecting issues (risks) to be addressed, the Group evaluates risks based on two axes: the degree of impact on business activities and the likelihood of occurrence.
The evaluation scale used by the Risk Management Committee when selecting significant risks is the degree of impact (large: ¥1 billion or more; medium: ¥100 million to less than ¥1 billion; small: less than ¥100 million) and likelihood of occurrence (high: once or more per year; medium: once every two years; low: less frequent than once every ten years). Each business division and affiliated company establishes evaluation scales according to its own management scale and uses them for risk evaluation.
In FY2025 activities, as in the previous fiscal year, the Risk Management Committee conducted a risk assessment in which all persons responsible for business divisions and affiliated companies participated, and based on the results, identified significant risks that should be addressed by the Group.
Identification of Risks
As a result of the FY2025 risk assessment, the Risk Management Committee selected the following two points as significant risks.
1. Disruption of the Company’s Operations
2. Disruption to the Supply of Raw and Auxiliary Materials
In selecting these significant risks, the Group did not limit the occurrence factors to natural disasters or large-scale accidents, but examined them from a broad range of perspectives. For the selected significant risks, the Group establishes response measures, implementing organizations, persons responsible, targets, and plans, and continuously monitors and evaluates the implementation status.
In addition, regarding matters that emerged as candidates for significant risks during the risk assessment process, such as the shift to EVs, economic fluctuations, information security, and the progress of inflation, the response status is monitored and evaluated by other meeting bodies and committees, and the contents are reported to the Board of Directors.
| Identified significant risks | Results |
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In addition to dispersing risk through the reorganization of the global production system, the Group promoted the development of an information collection system that grasps the production and shipment status of each site and the inventory status by item. Through this, the Group is strengthening a system that enables prompt judgment of alternative production based on data even when disasters or accidents occur. In addition, with regard to business continuity plans (BCP), the Group implements practical simulation training assuming fires caused by earthquakes and inundation caused by floods, and verifies their effectiveness. At the same time, the Group has newly expanded the scope of BCP formulation and operation from 20 domestic and overseas sites to four additional sites, and is working to strengthen the response system. |
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In addition to major raw materials, the Group is promoting purchasing from multiple companies for auxiliary materials and outsourcing processors as well. In addition, the Group requests major business partners to formulate and operate business continuity plans (BCP), and conducts surveys once a year regarding the status of maintenance and updates. |
