The business environment faces numerous threats, ranging from geopolitical instability to natural disasters. Chugai Pharmaceutical's Risk and Compliance Department plays a vital role in mitigating such external risks while supporting the company's sustainable growth. Two professionals, each bringing diverse experience, share their perspectives on frontline risk management.

*Reprinted from Chugai's official talentbook (https://www.talent-book.jp/chugai-pharm). The descriptions and affiliations are current as of May 2025.

Safeguarding the Company from External Risks and Supporting Departmental Challenges

The Risk and Compliance Department oversees company-wide risk management and promotes efficient, effective compliance. Its responsibilities include risk management, corporate compliance, information governance, and internal investigations.

Hirota　The purpose of our Risk and Compliance Department is to foster a culture of risk management and compliance that aligns with Chugai’s vision of becoming a world-leading innovator. We aim to contribute to innovation, sustainable development, and the growth of each employee—that's our department's purpose.

We address a broad spectrum of risks associated with corporate management, and we have established an ERM* framework to manage these risks across the company. Within this framework, I oversee company-wide ERM, as well as risk management related to third parties and overseas subsidiaries.

*ERM: Enterprise Risk Management

Nakayama　My primary responsibility is to address geopolitical and economic security risks. I prepare for potential emergencies, such as international conflicts, and evaluate the company’s responses to heightened economic security regulations and shifts in the external environment.

Discussing their organizational role, Hirota and Nakayama reflect:

Hirota　After joining Chugai Pharmaceutical, I was impressed by the company's rigorous compliance with the pharmaceutical industry's stringent regulations. However, I also saw opportunities to enhance risk management related to broader external factors not unique to the pharmaceutical sector.

I joined mid-career to contribute to this area. To strengthen Chugai’s management foundation, I actively propose new ideas based on perspectives gained outside the pharmaceutical industry.

Nakayama　As Hirota mentioned, it is important to help employees recognize external risks as personally relevant. Simply stating, “We must be cautious about economic security risks,” may not resonate.

Instead, I tailor messages for each department, for example, by saying, “We need to visualize the supply chain and implement countermeasures to prevent supply disruptions of raw materials and products.”

Frontline employees are the ones who drive business operations. Our role is to enhance their safety by making warning signs visible, clarifying the operational landscape, and occasionally acting as guardrails to minimize potential losses.

Leveraging Cross-Industry Expertise: Synergy Through Diversity

Before joining Chugai Pharmaceutical, both Hirota and Nakayama built extensive careers in other sectors.

Hirota　My first position was at a government agency, where I gathered and analyzed information on trade, economic security, tariffs, and international political economy to support Japanese companies expanding overseas. I then worked in the automotive industry in international affairs, followed by a role at a consulting firm, where I managed ERM and economic security projects. I joined Chugai Pharmaceutical mid-career.

Nakayama　I gained experience in the legal department of a major general chemical manufacturer, where I handled contract reviews and dispute resolution. I later took on responsibility for security trade control, which involves managing exports to prevent Japanese technologies and products from being diverted for military use. I coordinated company-wide efforts in this area and contributed to economic security risk responses. I then moved to a department promoting compliance education and company-wide risk management, gained two years of experience there, and subsequently transferred to Chugai Pharmaceutical.

Both selected Chugai Pharmaceutical due to its alignment with their professional interests in growth industries.

Hirota　Chugai continues to grow and develops pharmaceuticals that are essential to society. I was particularly drawn to its patient-centric values, which are foundational to the company. After joining, I saw that employees work with a strong sense of mission to deliver products to patients while navigating external environmental changes.

Furthermore, the company actively promotes the use of AI in drug discovery. This presents a unique opportunity to consider how to develop new technologies and businesses while evaluating associated risks and opportunities.

Nakayama　I have long been interested in life sciences and healthcare, industries prioritized by governments and characterized by growth potential. Although industry-specific regulations can hinder innovation, it is precisely why I find it rewarding to devise strategies and think about "how to grow the business within regulations."

They emphasize that their department benefits from a range of professional backgrounds.

Hirota　Our team includes experts in economic security and overseas safety management, as well as mid-career professionals with legal qualifications who make significant contributions. Many members have transferred from other industries, and we draw on each other’s strengths to generate synergy.

Nakayama　Recently, internal rotation has become more active. In addition to mid-career hires, we now work with colleagues who bring firsthand field experience from within the company. Collaborating with members who understand operations on the ground provides valuable new perspectives for me.

Strengthening Risk Management Amid Rapid Growth: A Mid-Career Perspective on Transformation

Mid-career hires play a crucial role in supporting Chugai Pharmaceutical’s continued growth.

Hirota　Chugai Pharmaceutical actively promotes mid-career hiring, with such hires now comprising approximately 30 percent of our workforce. As personnel from diverse backgrounds join, I see more proposals for business improvements emerging from varied perspectives. This diversity fosters an environment conducive to new initiatives.

Colleagues listen attentively when consulted or requested, and they are receptive to insights from those of us with experience outside the pharmaceutical sector. This creates a strong foundation for integrating knowledge across industries.

Nakayama　Chugai Pharmaceutical is also flexible in adapting to change. As the organization evolves amid rapid growth, we are actively promoting DX [digital transformation], including systematization.

I aim to maintain this agility while honoring the expertise Chugai has built over its 100-year history. My goal is to optimize operations from a company-wide perspective and contribute to organizational strengthening, especially as we address challenges unique to a growing enterprise.

Both professionals emphasize the importance of cross-departmental collaboration in realizing Chugai’s vision of becoming a world-leading innovator, as outlined in its growth strategy, "TOP I 2030."

Hirota　Each department faces different challenges and business needs. When developing a company-wide risk management system, it is critical to listen carefully to on-the-ground perspectives. Understanding the current system's shortcomings starts with engaging directly with those involved.

Nakayama　To embed compliance and risk awareness, direct field engagement is essential. Simply issuing instructions does not move the organization. I make it a point to visit departments, explain initiatives in my own words, and foster understanding through dialogue.

At the same time, I maintain a management-level perspective and work to influence the management team. In particular, I want to support innovation by safeguarding technical information, which underpins Chugai's competitive advantage.

Possibilities for Career Expansion Through Initiative: Taking Initiative and Creating Opportunities for Challenges

Mid-career hires play a crucial role in supporting Chugai Pharmaceutical’s continued growth.

Hirota　Chugai Pharmaceutical actively promotes mid-career hiring, with such hires now comprising approximately 30 percent of our workforce. As personnel from diverse backgrounds join, I see more proposals for business improvements emerging from varied perspectives. This diversity fosters an environment conducive to new initiatives.

Colleagues listen attentively when consulted or requested, and they are receptive to insights from those of us with experience outside the pharmaceutical sector. This creates a strong foundation for integrating knowledge across industries.

Nakayama　Chugai Pharmaceutical is also flexible in adapting to change. As the organization evolves amid rapid growth, we are actively promoting DX [digital transformation], including systematization.

I aim to maintain this agility while honoring the expertise Chugai has built over its 100-year history. My goal is to optimize operations from a company-wide perspective and contribute to organizational strengthening, especially as we address challenges unique to a growing enterprise.

Both professionals emphasize the importance of cross-departmental collaboration in realizing Chugai’s vision of becoming a world-leading innovator, as outlined in its growth strategy, "TOP I 2030."

Hirota　Each department faces different challenges and business needs. When developing a company-wide risk management system, it is critical to listen carefully to on-the-ground perspectives. Understanding the current system's shortcomings starts with engaging directly with those involved.

Nakayama　To embed compliance and risk awareness, direct field engagement is essential. Simply issuing instructions does not move the organization. I make it a point to visit departments, explain initiatives in my own words, and foster understanding through dialogue.

At the same time, I maintain a management-level perspective and work to influence the management team. In particular, I want to support innovation by safeguarding technical information, which underpins Chugai's competitive advantage.