Risk Management

Corporate activities are affected by various uncertainties (risks) that exist internally and externally. Proper management of risks is therefore essential in maintaining and increasing corporate value. At Chugai, risk management is a key issue underpinning sustainability, and we strive to evolve it every day.

Risk Management Frameworks and Initiatives

Chugai has established the Risk Management Policy and Risk Management Regulations, and set up a Risk Management Committee chaired by a representative director as a corporate management committee, as well as Division Risk Management Committees in each division and at subsidiaries in Japan and overseas.

The Risk Management Committee monitors risk management in each division with a Company-wide perspective, evaluates reports from the Division Risk Management Committees, and submits reports to the Executive Committee as necessary. It also identifies Group-wide risk issues that may have a material impact on management, taking into consideration the status of response by the relevant divisions and trends in the industry and external environment, and submits progress reports on Company-wide measures to the Executive Committee.

Division Risk Management Committees create and quantitatively evaluate risk maps that identify the risks in the business activities of their respective divisions. To address priority risks, which are division risk issues, the Division Risk Management Committees draw up annual response plans and submit quarterly reports on the progress of the plans to the Risk Management Committee.

Chugai Risk Management System

Development and Introduction of the Risk Management System

Chugai has developed an original system to support risk management in divisions and at subsidiaries in Japan and overseas through effective comprehension and analysis of Group-wide risk information. We began implementing this system globally in 2019. Using its database for centralized management, divisions can record their risk maps and annual risk response plans. This enables us to analyze risks for the Group as a whole, and monitor countermeasures in each division.

Emergency Response System

If a problem arises in a division or at a subsidiary, the division or subsidiary involved will respond immediately and report to the Risk Management Committee.

In the event of a large-scale disaster or serious problem, an Emergency Headquarters led by the CEO and a cross-divisional Risk Response Subcommittee will be set up to carry out Company-wide emergency response measures.

In addition, a Business Continuity Plan is in place for responding to business continuity risks (e.g., a major earthquake, pandemic outbreak or cyber attack), and drills are conducted periodically.

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Sustainability and Business Strategy

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