1. HOME
  2. Sustainability
  3. Governance Report
  4. Risk Management

Risk Management

The Kureha Group analyzes and evalurates risks, then considers and implements countermeasures for high-priority risks in accordance with the Group's Basic Policy on Risk Management. We also apply the Plan Do Check Action (PDCA) cycle to this process to promote risk management.

Policy/Policies

With the approval of our Board of Directors, the Kureha Group has the following basic policy on risk management.

Kureha Group Basic Policy on Risk Management

Kureha Group Basic Policy on Risk Management

  • Understand the risks to Kureha Group's management and prevent them from occurring, and take necessary preventive measures to reduce the impact of risks that occur to an acceptable range.

Management Structure

GRI 2-24

Acting under the supervision of the Risk Management Subcommittee (a body under the Sustainability Coordination Committee), the departments and subcommittees appropriate to the classification of risks accompanying business activities take charge of risk management, in cooperation with the departments that directly address individual risks.
The Risk Management Subcommittee works to build our risk management system and verify implementation processes, while preventing omissions in the recognition of high-priority risks from a group management perspective.

Risk Management Implementation

GRI 2-25

Kureha and Group companies use the following process to manage risk:

  1. Identify risks
    The supervising department identifies individual risks (in detail) according to type, analyzes their level of importance, and rates them by priority of response.
  2. Analyze and rate risks
    The Risk Management Subcommittee and the Risk Management Committee and Secretariat at each Group company review the analyses and ratings of individual risks and gives any necessary instructions to the supervising department.
  3. Monitor the response to risks
    The supervising department monitors how the responsible department responds to individual risks judged to be high-priority and gives further instructions accordingly.
  4. Report and verify monitoring results
    The supervising department and the Risk Management Committee and Secretariat at each Group company report the results of monitoring to the Risk Management Subcommittee. Reports are submitted by the Subcommittee to the Sustainability Coordination Committee, which verifies the results of monitoring and, in line with the results of verification, provides necessary instruction to the supervising department.

The Risk Management Subcommittee reports on the status of the above to the Executive Committee and the Board of Directors through the Sustainability Coordination Committee, and releases timely updates on responses to major high-priority risks as appropriate.

Target(s) and What We Have Done/Are Doing

Target
Reduce to zero the risks that could materialize which could have a significant impact on business continuity and profit of Kureha Group companies.

What We Have Done (the Kureha Group)
Although no risks arose that could affect the continuation of the Group's business, profit decreased significantly compared to FY2022 due to the mainstay PVDF business for EV applications remaining sluggish in the European market, our main sales region, and the rise of LFP batteries in the Chinese market, the largest market in the world.

Initiative(s)/Activity(ies)

Important Risks

Annual Securities Report, Business Risks (Japanese Only)

Business Continuity Plan

In fiscal 2014, we developed and strengthened countermeasures to large-scale disasters such as earthquakes and formulated a Business Continuity Plan (BCP). In fiscal 2019, we started updating our BCP to include countermeasures to storm and flood damage, which have been increasingly severe in recent years. And we will continue to enhance our BCP by predicting and analyzing ever-changing disaster scenarios.
With the recent COVID-19 pandemic, we revised our Guidelines for Control of New Infectious Disease. We created COVID-19 response manuals matched to the specifics and circumstances of our head office and business sites, ensuring business continuity.

Overseas Crisis Management System

Kureha and Group companies have formulated a manual for expatriates and business travelers to use in crises to ensure employee safety and minimize damage in the event of an emergency overseas. We are also providing a medical assistance service run by a crisis management company for our employees while they are overseas.
We also support our overseas employees by providing crisis management information, timely alerts, instructions on travel restrictions, etc.