Risk Management System
In accordance with the Group Company Management Regulations, which define the basic approach to risk management at each Group company, the Company is appointing risk managers and building a system for reducing and preventing risks that arise in our business activities. A system is also in place to ensure that the occurrence of an incident that may have a material impact on the execution of business activities and reputation is immediately reported to SBG for an appropriate response as a group, in cooperation with Group companies as necessary.
With regard to the risk management of SBG, the Risk Management Regulations define the roles and responsibilities of each department, such as reducing and preventing risks arising from its own businesses. In addition, the Risk Management Department of SBG periodically monitors and assesses the status of risk management by each department, in accordance with these regulations. Complementing these initiatives, the Group Risk and Compliance Committee (GRCC) was newly established in 2019 to oversee risk management across the group. The GRCC meets quarterly to discuss policies for risk management activities and material risks and countermeasures, thereby working to strengthen the risk management capabilities at the group level. To further enhance SBG's operational structure, in November 2020, Risk Management Office was created and the Chief Risk Officer was appointed.
Risk Management Initiatives
To identify material risks at the group level and associated issues, the Group has set up and operates a risk management Plan-Do-Check-Act cycle under the supervision of the GRCC. In fiscal 2019, SBG collected information on risk assessments from 14 Group companies including major subsidiaries in each reportable segment, as well as from each department of SBG, under the leadership of the Risk Management Department. Based on the information collected, SBG identified material risks at the group level by analyzing and evaluating the materiality and frequency of occurrence of the risks. The material risks identified are reported to the GRCC and the Board of Directors, and based on their discussions, countermeasures are examined and monitored to ensure its effectiveness. Through the continuous implementation of this cycle, we aim to identify and respond to risks in a timely manner, thereby minimizing losses in the Group.