Chiyoda Group promotes the risk management activities and planning/ implementing Corporate Strategy as the robust wheels to support and drive maintaining/creating Corporate Value. Chiyoda Group ensures to properly disclose its business risk information to the stakeholders so as to increase transparency, to mitigate those risks by taking proactive countermeasures, then to achieve the business target. That is exactly the aim of CORPORATE RISK MANAGEMENT POLICY. The purposes and action guidelines of CORPORATE RISK MANAGEMENT POLICY are defined.
Corporate Risk Management Policy
April 01, 2015
The world energy business field, where Chiyoda plays its major roles, is in the midst of drastic structural changes. Not only ourselves, the members of Chiyoda Corporation including its group companies (hereinafter collectively called “Chiyoda Group”) but also regions we do business in, and partners we deal with, have been more and more diversified than ever before. According to such changes in the business circumstances, risks Chiyoda Group faces have also grown diversified, complicated and extensive.
Chiyoda Group promotes the risk management activities and planning/ implementing Corporate Strategy as the robust wheels to support and drive maintaining/creating Corporate Value. Chiyoda Group ensures to properly disclose its business risk information to the stakeholders so as to increase transparency, to mitigate those risks by taking proactive countermeasures, then to achieve the business target. That is exactly the aim of CORPORATE RISK MANAGEMENT POLICY. The purposes and action guidelines are defined as follow.
- To maximize corporate value
- To maintain corporate assets
- To secure business continuity
- To gain confidence of all the stakeholders including shareholders, clients, employees
- To promote a preventive Safety and Health Culture, in which safety comes first
- To report risk information immediately and share the information among the parties concerned.
- To ensure that all the directors and employees must well understand the importance of risk management and to make their best efforts in managing risks.
- To believe that every accident is preventable and conduct daily activities with this consciousness.
- To remember that the risks are defined as uncertainties which might affect the company’s interests and that we must manage risks in a rational and an optimal method from an overall perspective so as to maximize corporate value.
Every personnel in Chiyoda Group, regardless of where the one works, is required to follow the above.
Risk Management Structure
To manage individual project risk and profitability, the Chiyoda Group is increasing management transparency by implementing a double-check/internal control function in administration divisions in addition to a self-auditing system in project operation divisions. Professional auditing teams from administration divisions have effectively implemented project audits to verify the validity of the project execution plans formulated by the project operation divisions.
The Group has established risk management and crisis management systems to deal with significant risks and has appointed risk managers and crisis managers. We constantly work to prevent the occurrence of problems. In the event that a problem occurs, we will establish a Crisis Control Center that minimizes damage by mobilizing the entire workforce.
Chiyoda Corporation maps out a risk management plan in accordance with the Corporate Risk Management Policy established in 2015. We identify the risks we should prioritize and carry out a plan-do-check-act (PDCA) cycle on the identified risks.
To identify the risks to be prioritized, a risk survey has been annually conducted on management members, including executives, by the Corporate Risk Management Division. They assess about 100 risks on a risk questionnaire from three perspectives, impact, frequency and risk management. The questionnaire listed all risks to the Chiyoda Group possibly conceived in various aspects of its business, such as management, project implementation, natural disaster, IT, information security, and compliance including corruption, human rights and harassment.
The departments in charge, the Corporate Risk Management Division and other relevant departments will work closely together to avoid those identified risks or minimize the effects if the crises should ever arise.