Risk Management

S.T. Group conducts risk management for preventing various management risks surrounding our company and minimizing possible damages. In recent years, the demand for sustainability has increased, further amplifying the business risks surrounding corporations. Our group addresses these risks by managing them appropriately, thus realizing sustainable growth and enhancing corporate value.
We have established a risk management system to identify such risks that may affect management and to appropriately address and manage them.

Our organizational structure for risk management places the Sustainability Council directly under the Board of Executive Officers. Under this council, we have established committees for managing risks related to different issues, including the Risk Management Committee, Environmental Committee, Human Rights Compliance Committee, Health Committee, and Product Liability (PL) Committee.
The Sustainability Council, chaired by the President & CEO, oversees all risk management activities, with the President & CEO serving as the highest authority responsible for risk management. The members of the council are executives, with specific executives responding according to the nature of the risk. The secretariat of the Sustainability Council is managed by the Management Planning Department, which handles operations and support.
Regarding reporting, the Sustainability Council meets quarterly to deliberate and decide on matters, and the chairperson reports these to the Board of Directors. The head of the Audit Office is responsible for the examination and reports to the President and CEO and the Audit Committee. The head of the Audit Office will make suggestions and recommendations to the executive officers in charge as necessary.

The Sustainability Council oversees all subordinate committees and collectively manages all risks of our corporate group. Major risks include those related to general corporate activities, financial activities, human rights and occupational safety and health, information storage management and information system activities, sales activities, the environment, and purchasing activities.
For example, the Environmental Committee prioritizes and sets goals and action plans to address risks related to the global environment, such as climate change, and continuously works on improvements with reviews.

With regard to our corporate group's business continuity plan (BCP), S.T. Group is developing action plans for disasters and other events.