Approach

The IHI Group has established a series of Security Trade Control Rules to properly implement security trade control for the purpose of maintaining peace and safety in Japan and as part of the international community.
The IHI Group is making an effort to reduce the risk of legal violations and economic sanctions by not only complying with the Foreign Exchange and Foreign Trade Act (FEFTA) but also Group companies overseas in compliance with all laws in each country and region they operate in as well as conducting trade controls with consideration to foreign laws with extraterritorial application.

Governance

IHI Security Trade Control Committee

The IHI Group has set up its own Security Trade Control Committee for addressing proper trade control.
The IHI Security Trade Control Committee is a committee led by the Representative Director and composed of Committee members (Managers selected from each division, business area, and corporate divisions), and the secretariat (Economic Security Division). At the Committee, the Committee members conduct review, audit trade control practices, activities to share, raise awareness, and educate the IHI Group on the latest information about relevant laws and regulations.
In fiscal 2023 this Committee meeting was held three times, sharing audit results, management concerns, and security trade conditions including the situation overseas, and horizontally disseminating them to improve management quality throughout the IHI Group.

Security Trade Control Structure

IHI Security Trade Control Committee

Committee Chairperson	Representative Director
Members	Managers selected from each division, business area, and corporate divisions
Secretariat	Economic Security Division
Number of meetings convened in FY2023	3

Risk Management

Security Trade Control Review

The IHI Group conducts reviews as part of a three-line defense system for security trade control. After its transaction division conducts an initial review of every transaction, each division and business area conduct its own secondary review for validity and legality. Concerning highly sensitive cases or ones which require approval from the Ministry of Economy, Trade and Industry, a third review is conducted by the representative director. The Group has put into place a system that properly and thoroughly reviews all necessary cases depending on the details of the transaction.

Security Trade Control Review System

Initiatives

The IHI Group provides security trade control education for its employees at each specific level. Furthermore, the Group promotes STC Expert/STC Legal Expert certification acquisition, sponsored through an external organization.
Security trade control requires comprehensive and precise understanding of complex laws and regulations. The Group strives to ensure correct understanding of these laws and regulations by each employee as well as proper management.

Compliance Top