Change
Location
Currently Using The English Site.
Regional HQ’s Websites
Other
The IHI Group considers and engages in risk management as the top material issue of management.
The basic objectives of risk management are ensuring business continuity and the safety of Officers, employees, and their families, securing managerial resources, and maintaining public trust.
The IHI Group manages risk in accordance with the following action guidelines based on the Basic Code of Conduct.
The IHI Group has established the Risk Management Conference chaired by the CEO as a body to formulate and review policy initiatives and annual plans, assess their progress, and identify issues and take corrective measures, and other matters vital to overall risk management. Details of the Risk Management Conference are reported to the Board of Directors, who then develop systems to achieve risk management initiatives as well as monitor, supervise, and evaluate operation.
In addition, the IHI Group established the Compliance Committee, a Group-wide committee on compliance under the Risk Management Conference. This Committee is chaired by the Officer in charge of Group Compliance.
In order to carry out effective risk management, IHI has clarified the roles and responsibilities of the first line (business areas, business units, and affiliated companies), second line (corporate divisions), and third line (Internal Audit Division).
| Chairperson | Chief Executive Officer (CEO) |
|---|---|
| Members | General Managers of Group Risk Management Units, Presidents of business areas, and others nominated by the Chairperson |
| Secretariat | Corporate Planning Division |
| Number of meetings convened in FY2024 | 4 |
The IHI Group establishes the Key Policies for Risk Management for each fiscal year. Each IHI division and affiliated company, including those overseas, move forward with independent risk management in accordance with these policies.
The Group is working on comprehensive risk management activities for a wide range of business-related risks. It also designates particularly important risks as the key risk management themes.
Group Risk Management Units made up primarily of IHI corporate divisions provide information and training capitalizing on their expertise, monitor the progress of risk management activities, and offer support to each division.
Additionally, the Internal Audit Division conducts an internal audit once a year to assess the level of preparation and performance of IHI Group’s risk management.
The IHI Group’s first line (business areas, business units, and affiliated companies), second line (corporate divisions), and third line (Internal Audit Department) each conduct independent and effective risk management based on their respective roles and responsibilities. In a social environment where instability is a given, the IHI Group as a whole will identify new risks that need to be addressed in a timely manner, consider response policies at the Risk Management Conference, and conduct proactive and systematic risk management.
The IHI Group will strive to foster sustainable growth and improve corporate value through focused efforts on each of the themes described below.
In the IHI Group ESG Management announcement made in November 2021, the IHI Group identified measures to combat climate change, respect human rights, promote diversity, equity, and inclusion, and secure and maintain the trust of stakeholders as material issues for ESG management. In the Group Management Policies 2023 announcement made in May 2023, the Group regards responses to customer and social issues, including climate change countermeasures, as business opportunities, and promotes ESG management by incorporating environmental and social values into its business evaluations.
Through internal organizations and various activities centered on the Risk Management Conference and the ESG Management Promotion Committee, the IHI Group conducts key theme activities and comprehensive risk management activities for ESG risks related to the above-mentioned ESG management material issues. The IHI Group’s risk management activities also include ESG risks, which are monitored, supervised, and evaluated by its Board of Directors.
Compared to other regions of the world, Japan has a high level of seismic activity. Earthquakes and the ensuing tsunamis are among the most significant risk factors that the IHI Group must closely monitor because many of its major production plants are located in Japan.
The IHI Group has been continuously evaluating the earthquake resistance of its production plants and offices and taking necessary earthquake countermeasures. From fiscal 2023, the Group has identified the Nankai Trough Megathrust Earthquake, which has an increasing probability of occurring in the future, as one of the emerging risks, and has formulated specific risk scenarios and calculated damage estimates and recovery times for each production plant. Additionally, the Group is analyzing production plants with a high risk of long-term production shutdowns in greater depth and evaluating countermeasures while integrating them into its Business Continuity Plans (BCP).
In recent years, the threat of cyber attacks has had a more significant impact on corporate activities. In order to continue doing business and meeting its social obligations, the IHI Group recognizes that addressing cyber security threats is a critical issue.
The IHI Group has implemented security measures for its information systems and provided security education to employees in response to recent threats.
More recently, the Group has also recognized cyber attacks on its supply chain as a major risk and has begun investigating the status of information security measures at key business partners locations and advising them on countermeasures.