Basic Approach to Risk Management
The DIC Group undertakes risk management initiatives with the aim of appropriately and flexibly addressing changes in its operating environment and the diversification of risks, and of swiftly mitigating damage. The Group recognizes risks in three principal categories: externally caused risks that are beyond its control, corporate risks that can be prevented and business risks that should be handled by the relevant divisions/departments. The Sustainability Subcommittee, which is a subordinate committee of the Sustainability Committee, oversees management of these risk responses.
Risk Management Policy and Framework for Promotion
The DIC Group first introduced risk management initiatives in 2001 by creating the Compliance Committee and setting up whistle-blowing hotlines. Following the inauguration of the Risk Management Subcommittee in May 2012, the Group undertook initiatives aimed at responding to serious natural disasters and promoting BCM. Beginning in fiscal year 2014, the Risk Management Subcommittee focused on establishing a risk management system. In a bid to ensure the effective and sustainable implementation of initiatives, in January 2015 the Group introduced a newly formulated risk management policy. In May 2018, the functions of the Risk Management Subcommittee were transferred to the Sustainability Subcommittee and the BCM and Crisis Management Working Group was established to strengthen the Group’s framework for promoting risk management and business continuity.
Risk Management Policy
Risk management objectives
The DIC Group undertakes risk management initiatives with the aim of appropriately and flexibly addressing changes in the operating environment and the diversification of risks, and of swiftly mitigating damage.
Definition of risks and risk management
The DIC Group’s definition of risk and risk management is as follows:
- Risk: All uncertainties that threaten the DIC Group’s sustainability and business goals.
- Risk management: Initiatives to enhance corporate value by managing all risks to the DIC Group from a Groupwide perspective.
Risk management initiatives
- The DIC Group comprehensively evaluates all risks based on their potential impact on operations and likelihood of occurring, among others, and prioritizes systematic and effective responses.
- The DIC Group constructs and validates risk management systems by repeating the PDCA cycle.
- The Risk Management Subcommittee shares responsibilities with the risk management teams of individual businesses to properly deploy risk measures within the DIC Group. The conference regularly reports on its activities to the Sustainability Committee.