Risk management

Promotion of risk management

J-OIL MILLS emphasizes risk management through accurate identification, evaluation, and management of risks, and thorough compliance in order for the company to develop sustainably.
For risk management, we have established Risk Management Committee, which is chaired by Group Representative Member of the Board, President and Representative Executive Officer, President and CEO, and whose members include Member of the Board and Executive Officer. The committee deliberates on important matters such as the identification of business risks, risk reduction activities that should be undertaken company-wide, and countermeasures for risks that have emerged. In addition, the contents of deliberations are reported to Executive Committee and Board of Directors once every six months, and Board of Directors Supervise the effectiveness of risk management through these reports.
Risk Management Committee has a "Risk Management Subcommittee" and a "Compliance Subcommittee" under its umbrella, and by supervising the management of both subcommittees, it also functions to operate and maintain internal control systems centered on risk management and compliance. I am fulfilling my role.
The mission of Risk Management Subcommittee is to anticipate and prevent risks and respond to crises. The mission of Compliance Subcommittee is to improve employee awareness and deal with compliance violations.
In addition, among management risks, risks related to sustainability, such as human rights, climate change, and environmental issues, are handled by Sustainability Committee, which has the functions of both risks and opportunities. The committee considers and promotes risk countermeasures.

Risk management system

Risk management process

In order to identify the management risks of our Group, each division and each subsidiary identify, analyze, and evaluate important risks every fiscal year, and after careful examination by Risk Management Committee, we consider the business environment and social conditions surrounding our Group. Based on these factors, we also focus on potential risks from a medium- to long-term perspective and identify management risks. Additionally, for each management risk, risk management officers (Executive Officer, etc.) appointed by Risk Management Committee promote initiatives to reduce and prevent risks at the company-wide level. Risk Management Committee regularly monitors the effectiveness of the management system and, in principle, reviews the effectiveness of the management system once every six months and reports the results to Board of Directors.
In addition, for crises that occur during the period (risks that materialize and have a significant impact on corporate value), we have established a crisis management system with the Representative Member of the Board, Representative Executive Officer, President and CEO as the chief executive officer, and Risk Management Subcommittee taking the lead. We are working to respond quickly and appropriately. After the crisis subsides, under the leadership of Risk Management Committee, we analyze the root cause of the crisis, implement corrective measures, and strive to prevent recurrence company-wide.

Management risks of J-OIL MILLS Group

The major risks (management risks) that we recognize as having the potential to have a significant impact on our Group's financial position, operating results, and cash flow status are as follows. Management risks are identified based on the "Medium-Term Business Plan" and Code of Conduct, and also by focusing on risks related to ESG (Environment, Society, and Governance). These risks are appropriately managed under the direction Supervise of Risk Management Committee, and we strive to prevent and avoid them. Furthermore, its effectiveness is Supervise by Board of Directors.
Please note that matters regarding the future have been determined by our Group based on information available as of the end of March 2023.
Please check the risk information for detailed management risks and responses.

List of management risks

Crisis management and BCP

In the event of a crisis, a crisis response division will be established as necessary based on the Crisis Management Regulations, and the crisis will be smoothly and promptly responded to, including appropriate information dissemination inside and outside the company, and We will try to find a solution.
In the event of a large-scale earthquake, based on the Business Continuity Plan (BCP) developed in anticipation of a Nankai Trough earthquake, a headquarters Division will be established to collect information and respond to recovery efforts in cooperation with the local community. to hold. We raise awareness and enlightenment by distributing a "Large-scale Disaster Response Pocket Manual'' to our employees and publishing "Risk Management Newsletters'' that cover risks surrounding us, including natural disasters. At each office/base, we systematically implement safety measures for production equipment and facilities, and regularly conduct safety confirmation drills and disaster prevention drills, and reflect the results in improving initial response and reviewing training plans.
In addition, in light of the increasing frequency and severity of typhoons and heavy rains caused by global warming, we are striving to strengthen and improve our business continuity response capabilities in the event of disasters other than large-scale earthquakes, and strive to provide a stable supply through business alliances and other means. We will continue to realize this.
Furthermore, as cyber-attacks against companies have been increasing in recent years, we will strengthen our monitoring of rising cybersecurity risks, and when an incident occurs, we will form a specialized response organization to analyze the cause and scope of impact. We have decided to conduct surveys, etc., and are continually conducting practical training and exercises.