Governance

Risk Management

Updated in December, 2024

Risk Management

Denka's approach to sustainability and risk management

Denka’s Board of Directors recognizes that responding to the changing business environment and various social issues is an important management issue that leads to reductions of risks and to profit opportunities. The Board of Directors has established The Denka Group Basic ESG Policy as Denka’s basic policy to proactively address these issues, and is working to improve the corporate value of the Denka Group over the medium to long term by appropriately responding to each risk, such as by strengthening compliance systems at the corporate group level and by transforming our business portfolio, challenging ourselves to create new businesses to solve social issues.

Integrated Risk Management and Risk Management Committee

In response to increasing business uncertainties, the Denka Group is engaged in integrated risk management, a group-wide risk management system. The Risk Management Committee, chaired by the President, analyzes Group-wide risks by impact and frequency of occurrence, and identified 10 Priority Risks, which include earthquake disasters (earthquakes and tsunamis), serious crimes committed against the company by third parties, economic crises, business fluctuations, and currency fluctuations. Bases on these Priority Risks, we have implemented monitoring activities such as strengthening our communication network during disasters and having management and plant executives conduct real-time disaster response drills. The content of monitoring is regularly reported to the Board of Directors through the Management Committee, which is independent of the Audit Committee, while the Board of Directors is also responsible for regularly reviewing whether the risk management system is functioning properly. The Denka Group will continue to enhance the effectiveness of its response measures through trial and error, reduce the impact of risks on business performance, and strive to enhance corporate value over the medium to long term.

Risk Management structure during normal times

Risk Management structure during normal times

  • *The Denka Group’s risk management is based on the international standard ISO 31000 and COSO ERM, an integrated ERM framework formulated by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) of the United States.
DFF Inc., デンカ株式会社, デンカ株式会社 IR室, 星和ビジネスリンク
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