Risk Management

Risk Management

Risk management system

Reporting to the Executive Committee after deliberation by the committees concerned

The Group has established the following risk management system. The CSR Promotion Committee, which comprises members from respective business headquarters and departments, deliberates on matters regarding overall risk management activities, such as proactive prevention and emergency response measures against risks. The Committee then reports the deliberation results to the CSR & Internal Control Council (Executive Committee) to obtain approval.

In implementing internal control, we strive to identify risks, mainly the risk of material misstatement in financial reports, based on the risks reported from Suminoe Textile Co., Ltd. and its Group companies in Japan and overseas. The Financial Control Committee examines the risk assessment results, which are reported to the CSR & Internal Control Council. Under this system, we have reduced risks to a certain level. We will henceforth promote the introduction of information technology (IT) to improve the system to mitigate each risk even further.

Promotion of risk management

To strengthen internal controls, we are proceeding with the introduction of a receivables/payables management system and a production management system at Group companies in Japan and overseas.

Moreover, in order to quickly disseminate accurate information in the event of an emergency, Suminoe Textile Co., Ltd. and SUMINOE Co., Ltd. hold an annual BCP-based emergency drill at their head office buildings. We also work on information sharing and employee training to protect and effectively utilize the intellectual property rights of the Group.