Developing more Sophisticated Risk Management
Policy and Strategy
Basic Views
The IINO Group has identified developing more sophisticated risk management as a materiality item to mitigate risks such as unexpected losses due to excessive risk taking and missed opportunities to improve corporate value due to excessive risk avoidance, and improving corporate value through investments that appropriately manage risks and returns, enabling the development of an appropriate risk taking structure.
Structure
Risk Management Systems
The IINO Group has established the Risk Management Committee to manage risk, deliberate about the policy, make proposals, and offer advice at the Group-wide level. It has also established three committees, Safety and Environment Committee, Quality and Systems Committee, and Compliance Committee, which report to the Risk Management Committee. The Board of Directors supervises the status of the operation of the risk management system and receives regular reports on the status of risk management.
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- The President Executive Officer serves as chairperson of the Risk Management Committee, Safety and Environment Committee, Quality and Systems Committee, and Compliance Committee.
Risk Management Committee and Three Subcommittees
The activities of the Risk Management Committee and three subcommittees are as follows.
Activities of Each Subcommittee
| Name | Content of Activities |
|---|---|
| Risk Management Committee | Besides instructing the three subcommittees and receiving matters for decisions and reports, the Risk Management Committee oversees risk management activities throughout the IINO Group, including risks relating to business strategy and major investments. |
| Safety and Environment Committee | The Safety and Environment Committee, established under the Safety and Environment Committee Regulations, is responsible for formulating and promoting policies on safety and the environment and implementing and reinforcing preventive and other measures to mitigate risks relating to serious accidents or problems that might affect vessels and buildings. |
| Quality and Systems Committee | The Quality and Systems Committee, established under the Quality and Systems Committee Regulations, is responsible for formulating and promoting policies on systems and administrative procedures and implementing and reinforcing preventive and other measures to mitigate risks relating to system failure, etc. |
| Compliance Committee | The Code of Conduct and the Compliance Regulations form the basis for the compliance system to ensure compliance in the execution of duties by the Group's officers and employees, including directors and executive officers. Chaired by the President Executive Officer, the Compliance Committee, established under the Compliance Committee Regulations, formulates and promotes compliance policies regarding compliance throughout the Group. |
Emergency Response
In the event of the occurrence of any emergency concerning the Group's operations, such as environmental pollution (oil spillage, etc.), a major incident or problem involving human lives and/or assets, or a large-scale disaster, the Company establishes an emergency response headquarters led by the President acting as HQ Director to manage the crisis in accordance with the Basic Provisions on Risk Management.
In addition, the IINO Group has formulated a Business Continuity Plan (BCP) envisaging a large-scale earthquake occurring in the area where the Group operates. Under this plan, systemic preparations have been made to ensure the swift recovery and continuation of all businesses of the Group.
