Risk Management Structure
Nippon Sanso Holdings (NSHD) group built a new risk management structure with its transition to a holding company
system in October 2020.
Our goal was to consider the risks to the overall group from a management perspective looking at the medium to long
term, to clarify the roles and responsibilities in risk management activities, and to optimize the risk management
structure for all group companies.
As the Global Risk Management Supervisory Manager, the President CEO has ultimate responsibility for the preparation
and implementation of our group's 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, gather risk information within our group, and share best practices.
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. The emblems show 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.
This emblem of the Global Risk Management Committee symbolizes support for management of the NSHD Group.
This emblem of the Global Strategy Review Committee symbolizes the NSHD Group’s offensive side of management.
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
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. At the Global Risk Management Committee held in February 2023, a lively
discussion covered three group-wide key risk themes for our group:
- Climate change and the decarbonization movement, and global economic and social change
- Maintaining and strengthening the business foundation
- Securing and developing the human resources to support the above two themes.
The committee also discussed geopolitical risks and included the views of individual operating companies and the
perspective of the entire 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.