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Risk Management

Basic Policy on Risk Management

The Proterial Group conducts risk management in accordance with the Proterial Group Code of Conduct, with the aim not only of preventing the impairment of corporate value, but also of maintaining and enhancing corporate value.

By identifying risks that may arise in the course of our business activities, assessing their potential impact, and linking them to appropriate countermeasures, we implement a comprehensive process that is incorporated into management decision-making. Through this process, we promote more reliable decision-making and sustainable growth.

The Proterial Group promotes risk management based on the following process:

  • Identification of risks that may affect business activities
  • Assessment of risks based on their potential impact and likelihood of occurrence
  • Selection of risks to be addressed with priority (“Priority Risks”)
  • Planning and implementation of response measures for such risks
  • Monitoring of the status and effectiveness of risk responses

Priority Risks are identified based on their significance, and are subject to enhanced management, including strengthened response measures and monitoring, as appropriate.

Framework

The Proterial Group has established an ERM Committee, chaired by the Chief Risk Control Officer (CRCO), to centrally and comprehensively manage risks across the Group.

The ERM Committee selects Priority Risks to be addressed by the Group and monitors the progress and effectiveness of measures taken to respond to such risks. The status of the Committee’s activities is regularly reported to the Senior Management Committee and the Board of Directors.

In addition, the departments responsible for each risk continually implement the entire risk management process—including risk identification, assessment, response, and monitoring—based on their respective areas of expertise.