Risk Management
Basic Concept
There is the risk that a crisis could materially impact our company activities, and we view risk management as an extremely important activity. We have established our Risk Management Guidelines and prepare for various risks for the purpose of preventing crises before they arise and minimizing the impacts on our company if a crisis does arise.
In FY 2023, we revised our Risk Management Guidelines, redefining the risk classifications in line with recent social circumstances and adding content following formulation of our business continuity plan (BCP). The guidelines were shared within the company.
Promotion Framework
We have established various internal committees, including the BCM Committee and the Information Security Committee, and we are constantly striving to manage risk by anticipating potential risks. It is also important to uniformly collect information on crisis management and make decisions comprehensively. We have therefore made the General Administration Headquarters the managing headquarters for crisis management, with the General Affairs Department executing these duties in normal times.
The BCM Committee is chaired by the Director of the General Administration Headquarters, and members are appointed from each headquarters. Committee meetings are held twice a year, where the status of BCP operations, drills, and confirmation of measures are shared with members and necessary measures are discussed.
In the event of a crisis, it is promptly reported to management, primarily to directors, and a Crisis Management Division is set up to deal with the crisis. The Crisis Management Division gathers and analyzes information, examines countermeasures and the policy to prevent reoccurrences, and establishes the structure to give instructions and orders to officers and employees on the actions required to resolve the crisis.
Framework
Business Continuity Management (BCM)
If a natural disaster occurred such as an earthquake, large typhoon, or volcanic eruption, or an event such as an infectious disease or large-scale prolonged power outage that would impact the continuity of economic activity, or an incident such as an information leak, it could exert enormous impacts on our business activities in the medium- to long term.
We have implemented a business continuity plan (BCP) since formulating it in FY 2021. It is designed to anticipate these kinds of emergencies in advance and to ensure the safety of employees and their families as the top priority in the event of a crisis, while contributing to the stability of society and the community, and fulfilling our social responsibility through business continuity.
A business continuity management (BCM) framework has been established under management for formulating the BCP, promoting preemptive measures, promoting education and training, and conducting periodic inspections and corrective actions during normal times. The BCP Promotion Administrative Office serves as the secretariat for the operational framework during normal times. The President and Representative of Board is responsible for BCM, and the Director of the General Administration Headquarters is responsible for the BCM Promotion Administrative Office. The BCM Committee keeps track of progress in BCM, reports to management, follows up on preventive measures and corrective actions, and plans and implements education and training.
In FY 2022, based on the business continuity plan, hearings were held four times with each division to examine the measures of each division and for each business under their jurisdiction and to prepare both tangible and intangible aspects. BCP drills have also been conducted in accordance with the manual.
[Basic policy]
Our highest priority is the life and safety of our employees. We also fulfill our responsibility to supply our customers and fulfill our social responsibility in order to continue being a sports apparel manufacturer trusted and counted on by all people who love sports.
In addition, as a member of society, we collaborate with the national and local governments and cooperate as much as possible in supporting the livelihoods of our employees and their families as well as in rescue and relief efforts for community residents. Furthermore, we contribute to society by continuously working to strengthen our business continuity capabilities for achieving sustainable growth and development, aiming to increase our corporate value.
[Objectives]
- Human life is our highest priority, so the safety of our employees, their families, and society is first and foremost (including measures to prevent infection and the spread of infection, etc. in the case of infectious diseases).
- We contribute to the safety of local communities. (Prevention of social and economic disruption) We will resume the provision of products and services as quickly as possible to minimize the impact on customers and society.
We will consciously conduct support activities as a sports apparel manufacturer as part of manufacturing, sales, and public relations, which will lead to the maintenance and improvement of our corporate value. - By deciding on contingency plans, we can delegate authority and respond quickly in the event of an emergency, thereby ensuring the survival of the company and organization, maintaining management, and securing earnings.
Preparing for Threats and Anticipated Risks
Among various threats such as large-scale earthquakes, infectious diseases, volcanic eruptions, fire, and terrorist attacks, our risk assessments are focused on large-scale earthquakes and infectious diseases as the highest priority threats we need to prepare for. We do, however, continue to consider other threats as required in the course of continuous improvement. In addition, we organize and analyze the risk situation at each of our relevant locations, and prepare issue management charts and manage progress in terms of issues, necessary preemptive measures, and improvement status.
Response to COVID-19
In response to the rise in COVID-19 cases, we established the COVID-19 Countermeasure Committee in March 2020. Chaired by the Director of the General Administration Headquarters, the committee promptly issues instructions and makes decisions to prevent serious incidents and the spread of infection. In light of the reclassification of COVID-19 as a Class V infectious disease in May 2023, the COVID-19 Countermeasure Committee has been dissolved, and efforts are continuing as infection control measures within the normal risk management system.
Refer to the following for information on our infection control measures.
Future Issues
We will strengthen collaboration with various internal committees and divisions with the aim of establishing a company-wide risk management system. We will also consider incorporating subsidiaries into BCM, with the ultimate goal of establishing a risk management system for the entire GOLDWIN Group. In terms of concrete measures, in addition to conducting drills and internal education, we will revise our BCM framework and update our guidelines and regulations as necessary.