The activities of Toray Group's risk management system are administered by a Group-Wide Risk Management Committee established under the CSR Committee. The Group-Wide Risk Management Committee monitors the company-wide risk management situation in all Group companies, and it is responsible for the integrated planning of company--wide policies. Each division, department, office, and plant has also organized Local Risk Management Committees. Each of these committees works to minimize the specific risks relevant to the particular business area or plant, while taking measures to prevent incidents from occurring. The activities of each local committee are first conveyed to the Group-Wide Risk Management Committee, before being periodically reported to the CSR Committee.

Toray evaluates management risk from a company-wide perspective, and promotes risk management by investigating measures for the entire Group.
In FY 2008, Toray promoted specific risk reduction measures after determining nine priority risk areas, based on a comprehensive identification and evaluation of relevant risks conducted in FY 2007. Working groups were established for the following three of the nine risk areas that were not already covered by any one responsible department, and comprehensive risk reduction measures were promoted.

1.

A New Influenza Virus Outbreak Countermeasures Plan
A New Influenza Virus Outbreak Countermeasures Plan was established as a basic plan to deal with potential global new influenza pandemic.

2.

Maintaining information security
Security measures were further strengthened for document, data, and facility management.

3.

Supply chain risk reduction
Internal rules were created and additional measures were investigated for the reduction of risk for Toray's entire supply chain.

Toray has established Crisis Management Regulations, which are clear fundamental principles that form the basis of company-wide responses should a major crisis occur, and works to ensure the thorough implementation of these regulations in a crisis.
In the event of a major crisis affecting the company's operations, the Emergency Quick Response System will be put into effect. Notification will be conveyed via the Emergency Reporting Route, and a Company-Wide Emergency Headquarters will be set up, led by the Toray president, or a person nominated by the president. The Company-Wide Emergency Headquarters will work closely with the Onsite Emergency Headquarters, undertaking a variety of activities aimed at preventing any further escalation of the crisis and at achieving a speedy return to normality. The Company-Wide Emergency Headquarters will be responsible for the provision of emergency information to relevant areas, both within and outside Toray, in accordance with the regulations.

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