Risk control is becoming increasingly important as the management environment for businesses undergoes rapid changes with rising complexity and uncertainty.

Toyoda Gosei considers risk management to be an important activity in moving toward sustainable growth. This is broadly divided into business strategy management, which leads to business growth by grasping opportunities while minimizing negative aspects and maximizing positive aspects, and management foundation risk to prevent crises that have major impacts on management and, in the event that they do occur, to minimize damage and loss. In this risk management, the CRO leads the group overall, undertaking activities to reduce each risk while also identifying risks in company-wide meetings of each function and making decisions on measures to counter these risks.

The Internal Control Committee, for which the company president serves as chairman, identified major risks, decides countermeasures, and checks the execution status for both business strategy risks and management foundation risks. More effective countermeasures are then implemented. In addition, the Board of Directors debate the actions to take against serious risks and unexpected business risks from political instability, and conduct continuous kaizen.

The basic stance on management foundation risks is set forth in the Crisis Management Guidelines, which clarifies the handling items for appropriate and prompt action in the event that problems occur.

Business strategy risks and operating foundation risks based on the business environment are assessed from the perspective of impact on operations (financial impact, etc.) and possibility of occurrence (frequency), and key risks are identified.

Key risks are reflected in company policy as important action items, and initiatives are made to mitigate or prevent risks.

A crisis management system has been put in place for the event of a massive disaster, such as the predicted Nankai Trough earthquake or natural disasters due to climate change. This system is based on the principles of human life first, community support, and early recovery. Specifically, in addition to infrastructure and system measures based on the Crisis Management Project, resilience training has been conducted more than 210 times for directors and members of antidisaster departments since FY2013. These efforts are based on the company’s belief that improving the skills of response personnel is essential. Specific procedures for the recovery of affected buildings, facilities, and processes have also been established, and for alternative production in a production recovery system.

Recovery training for design drawings and other data is also carried out so that product development can be continued even after disasters. In addition, workshops to strengthen crisis management not only in Toyoda Gosei companies but also at Group companies and suppliers are conducted regularly. Assessments using anti-earthquake measure implementation status check sheets, clarification of weak points with graphs, presentation of responses taken at Toyoda Gosei and other companies, and cooperative preparation of business continuation plans (BCP) are carried out.

In response to global risks that occur not only in Japan but also in other countries (e.g., parts and raw material shortages and the international situation), we are taking necessary actions on a global basis to quickly assess the situation (weekly BCP reports) both in Japan and overseas. Standardization is also underway so that domestic and international locations can take measures on their own initiative, and we are enhancing our ability to respond to key risks seen in the business environment of each company.