Core concept
To guarantee the efficacy and efficiency of UNISOL Group operations, as well as appropriate financial reporting, we have developed a system for appropriate risk management and are promoting risk management Group-wide.
Risk management system
Maruka Furusato Corporation has established a Risk Control Committee, chaired by the President and Representative Director, in accordance with internal regulations. The Committee oversees all risk management-related activities, including the collection of risk-related information, risk control, policies for addressing Group-wide material risks during the fiscal year, measures to reduce risks, and necessary instructions to and support of our business units. The Board of Directors also receives reports on Group-wide material risks from each of the relevant Committees, enabling it to oversee the effectiveness of our risk management.
Key features of Maruka Furusato Corporation’s risk management system include our Group-wide risk management, led principally by our Risk Control Committee, and continual improvements to the effectiveness of these efforts. To achieve these functions, we have clearly set out the role that each element of our organization will play within the system and applied the Three Lines of Defense model. We are enhancing operation of our risk management process to allow these functions to align appropriately with the monitoring provided by the Board of Directors.
Board of Directors
Based on risks submitted by the HD Risk Control Committee, the Board assesses priorities from an executive perspective and designates high-priority items as company-wide material risks. It then directs the implementation of appropriate control activities.
HD Risk Control Committee
This Committee comprehensively assesses business-specific company-wide material risks aggregated by the secretariat, focusing on those with the greatest potential impact to the Group from a holistic management perspective. It then deliberates these high-priority risks considering their likelihood of occurrence.
HD Risk Control Committee Secretariat (Risk Administration Division)
This Secretariat brings together risk-related information within the purviews of our first and second lines of defense and clarifies the departments with primary responsibility for each risk. It then facilitates discussions to strengthen risk control measures.
Risk Control Committee and Secretariat of the subsidiaries
This Committee and its Secretariat meet to receive reports on the status of responses to risks specific to each company and to share information on material risks for the Group as a whole.
1st line: Factories and business units of subsidiaries (risk owners)
We assess strategic, operational, and crisis risks within our business units, prioritizing them using potential impact and likelihood of occurrence as indicators, and then implement control activities.
2nd line: corporate divisions of HD and subsidiaries
The 2nd line monitors 1st line risk management, aggregates risk-related information falling under the purviews of both the 1st and 2nd lines, reports to and consults with the HD Risk Control Committee Secretariat, and more. Through this mutual collaboration with the 1st line, it promotes and strengthens Company-wide risk management.
3rd line: HD Internal Audit Office, internal audit divisions and personnel in charge of internal audits at subsidiaries
These divisions and personnel review the progress of our Company-wide risk management, including the status of risk control carried out by our 1st line and whether the 2nd line is functioning effectively in its support role. It reports to our President, Board of Directors, and the Audit and Supervisory Committee.
Business and other risks
The primary risks concerning the company’s business environment, accounting conditions, and other related factors that management believes may have a material impact on its performance are outlined below. Having recognized the possibility that these risks may occur, we will continue with efforts to avoid their occurrence and take action should they do so. For more information, please see sections on business and other risks in our annual securities reports (only in Japanese).
- Market trends
- Sustainability
- Legal regulations, etc.
- Securing human resources
- Information security
- Disasters
- Management of subsidiaries and associates
- Strategic investment
- Business strategy and management plan
- Data breaches
- Industrial accidents and serious traffic accidents
Note: The above list in not exhaustive and does not represent all of the risks that may be faced by the UNISOL Group.