Risk management

Risk management system

J-OIL MILLS Group has established Risk Management Committee, chaired by Representative Executive Officer, President and CEO and consisting of Executive Officer and other members. This committee oversees risk management for the entire company and deliberates important matters such as identifying risks that could have a significant impact on the Group 's management (management initiatives), efforts to reduce those risks, and countermeasures for risks that have materialized. Audit and Supervisory Board Member (including outside the company) also attend meetings and provide advice as necessary. The matters discussed at Risk Management Committee are reported to Executive Committee and Board of Directors on each occasion, and Board of Directors Supervise the effectiveness of risk management through these reports.
Risk Management Committee has established the Risk Management Subcommittee and the Compliance Subcommittee under its umbrella and, by overseeing both subcommittees, also fulfills the function of operating and maintaining the internal control system, centered on risk management and compliance.
Risk Management Subcommittee is responsible for anticipating and preventing risks and responding to crises, while Compliance Subcommittee is responsible for compliance, an important element of risk management, and is responsible for raising employee awareness and dealing with compliance violations.
A risk manager is appointed for each identified business risk, and under their leadership, they formulate risk response plans and initiatives specific measures. The risk manager is Executive Officer, including the CxO, appointed by Risk Management Committee, and the CEO, who is Representative Executive Officer, President and CEO, is positioned as the person responsible for overseeing all business risks.
Under the above system, each division and subsidiary of the Company will be instructed and supported by the respective risk responsibility divisions and various committees and meetings so that they can autonomously implement risk countermeasures.
Of the management risks, Sustainability Committee deliberates risks related to sustainability, such as human rights, climate change, and environmental issues, and considers and promotes risk response measures.

Risk management system

Risk management process

Based on our Medium-Term Business Plan and code of conduct, and also focusing on ESG (environmental, social, and governance) risks, we review our management risks every year.
In order to grasp the awareness of management risks in fiscal 2024, we conducted a survey of Executive Officer and interviewed internal Member of the Board. Taking into account changes in the business environment surrounding the Group and social conditions, as well as potential risks and management issues from a medium- to long-term perspective, Risk Management Committee deliberated and identified management risks for fiscal 2025. In addition, we appointed Executive Officer, including the CxO, as risk management officers.
Risk Management Committee monitors identified management risks once every six months to see whether the initiatives to reduce and prevent those risks are functioning effectively.
Furthermore, in the event of a crisis (a risk that materializes and has a significant impact on corporate value) that occurs during the period, we have established a crisis management system with our Representative Executive Officer, President and CEO CEO as the ultimate person in charge and Risk Management Subcommittee at the helm, and are working to respond quickly and appropriately. After the crisis has subsided, under the leadership of Risk Management Committee, we analyze the true cause of the crisis that occurred, implement corrective measures, and strive to prevent recurrence across the company. For details on the impact of management risks and responses, please refer to the risk information.

Management risks of J-OIL MILLS Group

The major risks that we recognize may have a significant impact on our financial position, business performance, and cash flow status are as follows. Please note that matters relating to the future have been judged by our Group based on information available as of the end of March 2025.
Please refer to the risk information for details on the impact of business risks and responses.

List of management risks

Crisis management and BCP

In the event of a crisis, we will set up a crisis task Division as necessary in accordance with the Crisis Management Regulations, respond smoothly and quickly to the crisis, including communicating appropriate information both inside and outside the company, and work to resolve it appropriately.
In the event of a large-scale earthquake, we will set up a headquarters disaster prevention Division based on the Business Continuity Plan (BCP) formulated for a Nankai Trough earthquake, and work with local authorities to gather information and respond to recovery efforts. We raise awareness among employees by distributing a "Pocket Manual for Response to Large-Scale Disasters" and issuing a "Risk Management Newsletter" on natural disasters and other risks in our daily lives. Each business office and base systematically implements safety measures for production equipment and facilities, and regularly conducts safety confirmation training and disaster prevention drills, with the results of which are reflected in improvements to initial responses and reviews of training plans.
In addition, in light of the increasing frequency and severity of damage caused by typhoons and heavy rains due to the progress of global warming, we will strive to strengthen and improve our business continuity response capabilities in the event of disasters other than large-scale earthquakes, and will achieve a stable supply through business alliances and other means.
Furthermore, in response to the increasing number of cyber attacks against companies in recent years, we have strengthened our monitoring in response to the growing cybersecurity risks. In the event of an incident, we will organize a specialized response organization to analyze the cause and investigate the scope of the impact, and we are continuously conducting practical training and exercises.

Information Security Policy

Based on the code of conduct set forth in the "Code of Corporate Ethics," we will responsibly manage and appropriately protect not only internal information but also information entrusted to us by external parties such as customers and business partners.
In order to prevent the unauthorized use of information, maintain the accuracy of the content at all times, and ensure that the information is usable, we have compiled our basic approach to handling information and established it as the "J-OIL MILLS Information Security Policy."
All members of our company understand and will comply with this policy.
(Note) The information referred to here includes all information used in business, including electronic data, documents, and audio.