Risk Management

UBE Group Risk Management Framework

UBE suitably manages risks to the UBE Group and stipulates risk management rules, based on the internal control framework established by the Board of Directors. In this way, risk management is implemented for all Group companies.

Risk Management System

The President of UBE appoints a director or executive officer to serve as Chief Risk Officer (CRO). The CRO is responsible for promoting the implementation of risk management tasks for the UBE Group. The Risk Management Department provides administrative and other support for the CRO, as the secretariat for risk management.

Serious (major) risks that impact the entire Group are reported to the Risk Management Committee for discussion. They are then submitted to the Group Strategic Management Meeting, where the members discuss approaches and effective measures based on the risk recognition. The details of these discussions are regularly reported to the Board of Directors, which monitors the risk management.

Individual officers are appointed to manage a particular serious (major) risk. Under this system, each officer evaluates the risk concerned along with the effectiveness of relevant risk management measures from a group-wide perspective. The officer then provides guidance and instruction to relevant departments for risk management measure implementation in the following fiscal year.

Risk Management Structure

System and Implementation

The risk management system operates by having UBE’s departments and Group companies identify their business risks and determine the risk level based on the impact of each risk and the likelihood that it will materialize. In accordance with the risk level, department managers approve the risk description, management targets, countermeasure proposal and implementation, and review, to implement risk management. At the end of the annual cycle, the effectiveness and efficiency of the countermeasures are reviewed by self-assessment and countermeasures are improved for the next fiscal year, under a plan-do-check-action (PDCA) cycle. This chain of processes forms a risk management system under which the Group centrally manages risk data, implements countermeasures, monitors improvements, and shares pertinent data through visualization.

Risk Management PDCA Cycle

Risks with Especially Significant Operational Impacts, Countermeasures, and Opportunities