Risk Management

Basic Concept

We at the Yamato Kogyo Group believe that by appropriately addressing the various risks surrounding our corporate activities from prevention to resolution, we can fulfill our social responsibilities and improve the level of trust. We prioritize risk management activities that focus on preventing potential risks while respecting the autonomy and initiative of each of our Group companies. In the event of an unforeseen situation, we basically adhere to the “BAD NEWS FIRST” policy to ensure that any inconvenient information is promptly communicated from the frontline. We believe that fostering an open corporate culture and taking prompt and appropriate action will lead to avoid risk and lay the foundation for trust in the Yamato Kogyo Group.

Structure

In July 2023, we established the Risk Management Department as an organization dedicated to risk management to enhance our response to cross-Group and other potential risks, as well as to further advance our risk management practices and accumulate know-how within the Group. As the cornerstone of our risk management system, we have introduced the Basic Policy on Risk Management, which focuses on addressing potential risks across all Group companies, regardless of their financial size.
Our Group’s risk management system is built upon both this Basic Policy on Risk Management, which outlines fundamental measures and roles for promoting risk management activities, and the Business Crisis Management Regulations, which provide specific responses to be taken in unforeseen circumstances. By following these policies and regulations, we aim to prevent risks, minimize losses, and ensure quick recovery for each Group company in the event of a crisis. We have developed a globally integrated risk management system led by the Yamato Kogyo’s Board of Directors. Part of the Board’s role is to oversee the Group's overall risk management system. The executives and employees of each Group company engage in business activities with a careful eye on risks, focusing on identifying and assessing potential risks, appropriately responding to them, improving response measures, and monitoring the process.
In the event of an unforeseen situation, we will establish a task force headed by the presidents of each Group company. This task force will then organize an information communications team and an external advisory team, including legal counsel, to swiftly respond to the situation and establish a system to prevent and minimize the spread of damage.

Business Continuity Planning (BCP) Initiatives

Our Group has established the regulations on disaster response and has a system in place to take rapid action in the event of emergencies. We regularly conduct drills for various disaster scenarios, including fires and earthquakes, organized by the Yamato Steel Safety and Environment Department. These drills ensure the effectiveness of our disaster countermeasures.
In the event of a real abnormal situation, we will prioritize protecting and saving lives, quickly restoring business operations, and maintaining public trust by establishing a disaster prevention headquarters to minimize damage and deal with the situation.