Risk Management

Risk Management System

J-Oil Mills Group has established a Management Risk Committee, chaired by the Representative Director and Executive Officer, with directors, executive committee members, etc. as members. This committee oversees risk management for the entire company and discusses important matters such as identifying risks that could have a significant impact on the Group's management (management risks), efforts to reduce those risks, and countermeasures for risks that have materialized. Auditors (including outside the company) also attend meetings and provide advice as necessary. The matters discussed at the Management Risk Committee are reported to the Management Meeting and the Board of Directors on each occasion, and the Board of Directors oversees the effectiveness of risk management through these reports.
The Management Risk Committee has established the Risk Management Subcommittee and the Compliance Subcommittee under its umbrella and, by overseeing both subcommittees, also fulfills the function of operating and maintaining the internal control system, centered on risk management and compliance.
Of the management risks, the Sustainability Committee deliberates risks related to sustainability, such as human rights, climate change, and environmental issues, and considers and promotes risk response measures.

Risk Management System

Risk Management Process

Based on our medium-term management plan and code of conduct, and also focusing on ESG (environmental, social, and governance) risks, we review our management risks every year.
During this fiscal year, we reviewed our previous bottom-up approach of identifying management risks based on the important risks identified by each division and subsidiary of our company, and conducted surveys of executive officers and interviews with internal directors to reflect their awareness of management risks and shift to a top-down approach that strengthens the involvement of management in the management risk identification process. Taking into account changes in the business environment surrounding our group and social conditions, as well as potential risks and management issues from a medium- to long-term perspective, we discussed and identified management risks at the Management Risk Committee and appointed a Chief Risk Officer (CxO).
The Management Risk Committee monitors identified management risks once every six months to see whether the measures to reduce and prevent those risks are functioning effectively.
Furthermore, in the event of a crisis (a risk that materializes and has a significant impact on corporate value) that occurs during the period, we have established a crisis management system with our Representative Director, President and CEO as the ultimate person in charge and the Chairman of the Risk Management Department in charge, and are working to respond quickly and appropriately. After the crisis has subsided, under the leadership of the Management Risk Committee, we analyze the true cause of the crisis that occurred, implement corrective measures, and strive to prevent recurrence across the company. For details on the impact of management risks and responses, please refer to the risk information.

J-Oil Mills Group Management Risks

The major risks that we recognize may have a significant impact on our financial position, business performance, and cash flow status are as follows. Please note that matters relating to the future have been judged by our Group based on information available as of the end of March 2024.
Please refer to the risk information for details on the impact of business risks and responses.

List of management risks

Crisis Management and BCP

In the event of a crisis, we will set up a crisis task force as necessary in accordance with the Crisis Management Regulations, respond smoothly and quickly to the crisis, including communicating appropriate information both inside and outside the company, and work to resolve it appropriately.
In the event of a large-scale earthquake, we will set up a headquarters disaster prevention headquarters based on the Business Continuity Plan (BCP) formulated for a Nankai Trough earthquake, and work with local authorities to gather information and respond to recovery efforts. We raise awareness among employees by distributing a "Pocket Manual for Response to Large-Scale Disasters" and issuing a "Risk Management Newsletter" on natural disasters and other risks in our daily lives. Each business office and base systematically implements safety measures for production equipment and facilities, and regularly conducts safety confirmation training and disaster prevention drills, with the results of which are reflected in improvements to initial responses and reviews of training plans.
In addition, in light of the increasing frequency and severity of damage caused by typhoons and heavy rains due to the progress of global warming, we will strive to strengthen and improve our business continuity response capabilities in the event of disasters other than large-scale earthquakes, and will achieve a stable supply through business alliances and other measures.
Furthermore, in response to the increasing number of cyber attacks against companies in recent years, we have strengthened our monitoring in response to the growing cybersecurity risks. In the event of an incident, we will organize a specialized response organization to analyze the cause and investigate the scope of the impact, and we are continuously conducting practical training and exercises.

Information Security Policy

Based on the code of conduct set forth in the "Code of Corporate Ethics," we will responsibly manage and appropriately protect not only internal company information, but also information entrusted to us by external parties such as customers and business partners.
In order to prevent the unauthorized use of information, maintain the accuracy of the content at all times, and ensure that the information is usable, we have compiled our basic approach to handling information and established it here as the "J-Oil Mills Information Security Policy."
All members of our company understand and will comply with this policy.
(Note) The information referred to here includes all information used in business, including electronic data, documents, and audio.