Basic Approach to Risk management

To ensure smooth operation of the Group's work, Daiseki is constructing a risk management structure that includes the development of a management structure to prevent the emergence of potential risks and the handling of risks that have emerged and risks that could impact us.

Definition of risks

Daiseki defines and handles risks as follows.

(1) Risks from external factors

• ❶ External environmental risks
• ❷ Disaster risks
• ❸ Reputation risks
• ❹ Technology advancement risks
• ❺ Credit risks

(2) Risks from internal factors

• ❶ Compliance risks
• ❷ Information leakage risks
• ❸ System risks
• ❹ Recycling flow interruption risks
• ❺ Whistleblowing risks
• ❻ Environmental contamination risks (accident risks)
• ❼ Occupational accident risks
• ❽ Financial reporting credibility risks

(3) Subsidiary company risks

(4) Other risks related to the business of the company Group

Risk Management Committee

Daiseki engages in risk management under a Risk Management Committee.

Matters implemented by the Risk Management Committee

• (1) Matters concerning policies, systems, and countermeasures related to the risk management of the Group
• (2) Matters concerning the collection of information on risks that may impact us and concerning measures against said risks
• (3) Matters concerning awareness-raising activities related to the prevention of potential risks
• (4) Matters concerning the formulation and operation of risk management measures
• (5) Matters concerning comprehensive coordination related to risks to the divisions, departments, etc. of the Group
• (6) Other necessary matters concerning risk management

When the Risk Management Committee recognizes any act that would obstruct the execution of its business in the implementation of these matters, it will promptly take measures to correct such act.

Composition of the Risk Management Committee

Chairman	President (Risk Management Supervising Officer)
Members	General Manager of the Headquarters of Business Generalization, Officer in charge of Headquarters of Business Generalization, Works Manager, presidents of Group companies
Secretary General (concurrently a Committee Member)	General Manager of the Headquarters of Planning and Management
Secretariat	Manager of the General Affairs Department, Manager of the Human Resources Department, Manager of the Safety Management Department, Manager of the Production Technology Development Department, Manager of the Facility Management Department, Manager of the Accounting and Finance Department, Manager of the Information System Department

Risk management structure

Revised March 1, 2020