Risk Mamanagement
To increase its corporate value, the 九色视频 Group has constructed a management system for risk with a potential material impact on business operations. Specifically, each department in charge of risk management appropriately recognizes risks and stipulates risk management rules for managing them. Based on these rules, the departments propose and execute the necessary action items, and verify their effectiveness by conducting audits of business divisions.
The departments revise the risk management rules as necessary to create a risk management system that is able to respond to the constantly changing corporate environment and risks.
Risk Management System
The 九色视频 Group Risk Management Committee, which is chaired by the president, has been established to plan, propose, and communicate the Group鈥檚 key policies and systems for risk management, and to confirm and approve the activity results and activity policy for each risk.
The committee maintains existing risk management activities relating to internal control risk, ascertains new risks with potential major impact on business operations, and takes countermeasures.
Specifically, the committee undertakes regular risk assessments of the 九色视频 Group, and after conducting a risk assessment, it determines new risks to be addressed as a priority. In addition, subcommittees under the supervision of the 九色视频 Group Risk Management Committee implement risk response measures and regularly report back to the committee on their progress. The committee monitors these and issues instructions where necessary.
The committee鈥檚 deliberations, including these risk management processes, are regularly reported to the Board of Directors, which reviews them.
Risk Assessment Overview
From November to December 2022, we conducted a risk questionnaire for executives at the level of division general manager or above (including all directors.)
Based on the questionnaire results, we considered factors including the impact and frequency of risk occurrence and expert opinions, and summarized these into a risk matrix.
For risks that have a particularly large impact, we again conducted interviews and so forth with relevant internal departments to confirm and verify the status of risk management activities based on risk management rules and related rules. Based on the results of these activities, we newly determined economic security and human rights due diligence to be risks that we need to address and we are taking countermeasures for them.
To appropriately respond to changes in the business environment, we plan to regularly conduct risk assessments and review the risks that need to be addressed.
Risk Countermeasures
Economic Security
Changes in the government policies and laws of countries in light of increased international tension, such as confrontations and wars between large countries, are expected to have a major impact on the Group鈥檚 business activities.
For supply chains that are expected to be particularly strongly impacted, relevant divisions within the Company cooperate to promote countermeasures, such as multi-site procurement, in order to promote increased risk resilience. In addition, we will further expand our countermeasures and management systems for the current status of related themes such as employee health and safety, information security, and security exports.
Human Rights Due Diligence
Amid global trends emphasizing human rights, the emergence of human rights issues could have a significant impact on the Company鈥檚 corporate value.
Based on the results of risk assessments conducted through internal workshops, the Group conducted human rights questionnaires with business partners and we also visited them as part of our engagement activities aimed at sharing human rights issues. We plan to continue this initiative and expand its scope to include Group companies.
We also surveyed foreign skilled interns in the company and held interviews to confirm details. Furthermore, we engaged in dialogue with overseas experts on business and human rights to make sure that the 九色视频 Group鈥檚 efforts to respect human rights align with global demands and expectations.