Risk Management System and Initiatives

Developing a Risk Management System

Ratio of group companies with enterprise risk management systems

Toray has established a Risk Management Committee under the CSR Committee to regularly monitor the progress of risk reduction measures across all group companies and conduct planning and promotion of risk management measures. Under the Risk Management Committee, local risk management committees have been established at each of Toray’s divisions, departments, offices, and plants.
Group-wide measures determined by the Risk Management Committee are given to local risk management committees, which then incorporate these measures in their own initiatives to reduce risks particular to their respective division, department, office or plant, while carrying out coordinated risk management activities.
At group companies around the world, risk management systems are established under the leadership of their presidents. The system promotes initiatives to reduce the specific risks faced by each company. Each group company reports on the results of these initiatives to Toray’s Risk Management Committee every fiscal year.
Toray evaluates overall risk and identifies priorities according to the scale of a risk’s potential impact on the Toray Group’s business. These issues are incorporated into plan-do-check-act (PDCA) cycles to reduce the risk that they pose.

Toray Risk Management System

Toray Risk Management System

PDCA Cycle for Enterprise Risk Management

PDCA Cycle for Enterprise Risk Management

Dealing with Priority Risks

Percentage of priority risks improved

Priority risks are reevaluated every three years, when Toray revisits initiatives to address the Company’s latest set of priority risks. In fiscal 2015, the initial year of the current three-year term, Toray focused on mitigating risk through a framework led by the department and/or cross-departmental working group responsible for implementing measures for each identified risk. As a result of these efforts, Toray surpassed its target for priority risks improved in fiscal 2015.
Group companies around the world identify their own specific priority risks and implements measures to reduce these risks, with Toray’s policy on handling priority risks as a guide.
Other major risks are managed separately from the priority risk schemes. The relevant departments are responsible for addressing these risks on an ongoing basis.

Measures Implemented by Working Groups

1. Supply chain risk reduction

In fiscal 2015, in addition to revising its CSR survey for suppliers, Toray reviewed ways of addressing global human rights issues in the Toray Group supply chain. The Toray Group conducts checks for the use of conflict minerals1 in all products and has been working to make its responses to customers’ requests for surveys quicker and more efficient by integrating data management.

  • 1 The four minerals of gold, tin, tantalum and tungsten mined in the Democratic Republic of Congo and the nine surrounding countries. The aim is to cut off sources of funding for armed groups in the Democratic Republic of Congo by imposing disclosure and reporting obligations on manufacturers that use conflict minerals.

2. Maintaining information security

The Toray Group continues to offer information security training via its online course. In fiscal 2015, 12,729 people at 14 group companies around the world utilized the group-wide online training system to participate in information security training.
Recognizing the increasing risk of targeted threats, Toray revised its Toray Group Electronic Information Security Policy based on security measure guidelines issued by the Information-Technology Promotion Agency Japan (IPA) and other resources.

Addressing Existing Major Risks

Toray is promoting ongoing risk reduction activities through group-wide committees that deal with existing major risks separately from the priority risk reduction measures. They include legal compliance, changes in raw material markets, business strategy, fluctuations in exchange rates and economic conditions, and security trade controls. Progress is reported to the Board of Directors as necessary.

Crisis Management Systems

The Toray Group has established Crisis Management Regulations, a set of clear fundamental principles that form the basis of a company-wide response in the event of a major crisis. The Group works to ensure the thorough implementation of these regulations when required. Moreover, the Group reviews these regulations as appropriate to prepare for new risks that emerge due to changes in the social environment.

Emergency Quick Response System

Emergency Quick Response System

  • 2 Notification is conducted according to the Emergency Reporting Route for Significant Disasters, Environmental Accidents, and Other Crisis Outbreaks.