J-Oil Mills value risk management through accurate identification, evaluation, and management of risks, as well as on compliance. In 2020, we reorganized our organizational structure to ensure more thorough enforcement and implementation of risk management and compliance. We clarified the functions of the Ethical and Compliance Committee and Risk Management Committee, which had existed up to now, and established the Management Risk Committee as a new organization providing instruction and reporting to the Management Meeting, and strengthened its functions and activities.
The Management Risk Committee responds comprehensively and promptly to potential risks that could affect management, crises such as compliance violations (manifested risks) and grave crises, and strives to prevent and reduce their impact. Under the Management Risk Committee, we established the Compliance Subcommittee with missions including to raise employee awareness and deal with compliance violations, and the Risk Management Subcommittee with a mission to anticipate and prevent risks and respond to crises.
All future-oriented statements in the following discussion constitute judgments of the J-Oil Mills Group based on information available as of March 31, 2020.
Risks |
Responses to Risks |
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1. Effects of raw material procurement and impact of exchange rates |
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Market fluctuations in grains, exchange rates, maritime freight, meals, etc. |
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2. Spread of infectious diseases |
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Spread of infectious diseases such as COVID-19 |
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3. Natural disasters |
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Disasters such as large-scale earthquakes and typhoons |
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4. Import duties |
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Lower tariffs on soy bean oil and canola oil from overseas |
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5. Drop in demand for oils, fats, and meal products |
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6. Declining and aging population in Japan |
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Decrease in product demand with market contraction due to continued declining birthrate and aging population |
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7. Potential risks in overseas expansion |
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Risks inherent in overseas expansion including unexpected revisions of laws, regulations, and tax systems, political and social risks such as conflict and terrorism, and the potential occurrence of natural disasters. |
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8. Environmental and social issues |
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Damage to corporate value if environmental measures are insufficient, impact on financing and securing of employees |
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Risks |
Responses to Risks |
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1. Effects of information leakage and unauthorized access |
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Occurrence of information leaks or alteration of data as a result of unauthorized access or infection by computer viruses |
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2. Food safety |
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Occurrence of distribution withdrawal and recall due to health hazards to customers or violation of laws and regulations such as those pertaining to labeling, occurrence of food fraud or alteration of data |
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3. Securing human resources |
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Insufficient recruitment of human resources with the high level of expertise required in each field, or inadequate systematic promotion of the securing, development, and positioning of human resources who will lead the next generation |
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Risks |
Responses to Risks |
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1. Compliance |
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Occurrence of acts contrary to laws, regulations and social norms, occurrence of fraud, harassment, etc., business constraints due to unforeseen regulatory changes or additions |
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