Risk Management

Risk Management Structure

The Nippon Sanso Holdings Group built a companywide risk management structure based on a more global perspective with its transition to a pure holding company system.
Centered on the Global Risk Management Committee, the structure is designed to optimize risk management activities by clarifying roles and responsibilities in the Group and evaluating management risk from a medium- and long-term perspective.
As the Global Risk Management Supervisory Manager, the President CEO has ultimate responsibility for the preparation and implementation of the risk management structure covering all Group companies.

Furthermore, the presidents of the operating companies are in charge of risk management in their respective regions, and have responsibility for the preparation and implementation of their respective regional risk management structures. They oversee persons in charge of promoting regional risk management, who promote risk management in each region.
The Global Risk Management Committee liaises with the Global Strategy Review Committee and strives to ascertain both the risks and opportunities presented by the business strategies of the overall Group.
In addition, the Global Information Security Council and the Global Compliance Committee share risk information while promoting companywide risk management activities.

Special Features of Our Risk Management Structure

One special feature of our risk management structure is that the Global Risk Management Committee operates in unison with the Global Strategy Review Committee. We pursue operational excellence by deliberating about risks and opportunities in the business environment with various viewpoints shared, while sharing identified and addressed risks in business operations.
Starting in FYE2022, NSHD created an emblem for each committee with the intention of further enhancing their sense of unity and collaboration. Both committees are like two sides of a single coin. Through the operations of both committees, we will make every effort to achieve the goals in NS Vision 2026.

Risk Management Process

Our group identifies and assesses risks by recognizing changes in the business environment and looking at their potential to both increase and damage corporate value. From the results of this assessment, we identify group-wide key risks and conduct risk response and monitoring in accordance with our risk response policy to optimize the risk response across all group companies.
Our risk management processes include a process for us and its operating companies, and a process for group-wide key risks that require a priority organization-level response. Both of these processes comprise the steps of risk identification, risk assessment, risk response policy determination, risk response measure determination, response to risk, and monitoring and review.

Our group's Global Risk Management Committee meets once a year. It liaises with the Global Strategy Review Committee so that the management team can understand our group's overall business strategy in terms of both risk and opportunity. The main criteria for selecting the group-wide key risks for our group are as follows: 
• Risks that are to be managed from our group management/all-company perspective with a medium- to long-term view
• Risks that impact our group's business foundation, or certain important businesses

In addition, we also base our selection on our materiality issues and business strategies, such as the medium-term management plan. Our group-wide key risks for FY2025 are as follows. 

Our Group-wide Key Risks

Changes in external and internal environment	Geopolitical risk, supply chains, changes in economic conditions, carbon neutrality
Maintain and reinforce core business	Aging of equipment, strengthening coordination in technology development, compliance and prevention of corruption, IT security
Secure and train human resources who will support the aforementioned endeavors	Shortage of human resources, succession planning, DEI

At the Global Risk Management Committee held in February 2025, a lively discussion covered the group-wide key risk themes for our group. The committee also discussed “Progress in Carbon Neutrality and Securing CO₂ Supply Sources” and “Trump 2.0 and U.S. Policies,” incorporating the views of individual operating companies as well as the perspective of the entire NSHD Group. By sharing risk recognition and promoting risk response as our group, we will make our achievement of medium-term management plan NS Vision 2026 a certainty. Furthermore, the Risk Management Liaison Meeting meets as a complement to the Global Risk Management Committee, with the purpose of confirming risk information and the status of risk response at each operating company and sharing best practices. Looking forward, we will coordinate with each operating company to promote risk management activities for the entire group. 

 

• Global Information Security Council (GISC)
• Information Security Policy