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The IHI Group recognizes risk management as indispensable to its corporate management and is working to strengthen it across the entire Group.
The basic objectives of risk management are to ensure business continuity, protect the safety of employees and their families, secure managerial resources, and maintain public trust.
The IHI Group manages risks in accordance with the following action guidelines based on the Basic Code of Conduct for the IHI Group.
The IHI Group has established the Risk Management Conference, chaired by the CEO, as a forum for discussing key matters related to group-wide risk management. The Conference develops risk management policies and annual plans, monitors their progress, identifies issues, and decides on corrective measures. The matters discussed by the Risk Management Conference are reported to the Board of Directors, which monitors, supervises, and evaluates the development of the systems and their operation required to achieve the objectives of risk management.
In addition, the IHI Group has established the Compliance Committee under the Risk Management Conference as a Group-wide committee on compliance. This Committee is chaired by the officer in charge of Group Compliance.
In order to carry out effective risk management, the IHI Group has established a risk management structure that clearly defines 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 Corporate Departments in charge of Group Risk Management (the Group Risk Management Divisions), Presidents of business areas, and others nominated by the Chairperson |
| Secretariat | Legal Division* |
| Number of meetings convened in FY2025 | 4 |
The IHI Group has established the Risk Management Policies for each fiscal year. Each IHI division and affiliated company, including those overseas, carries out independent risk management activities proactively in accordance with these policies.
The Group conducts comprehensive, Group-wide risk management activities covering a wide range of business-related risks. It also identifies risks requiring particular attention as key focus areas for risk management.
The Group Risk Management Divisions responsible for specific risk areas are referred to as the Group Risk Management Divisions. Drawing on their expertise, they provide information and training, monitor the implementation of risk management activities, and support 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 Division) each conduct independent and effective risk management based on their respective roles and responsibilities. In an increasingly uncertain social environment, the IHI Group as a whole identifies emerging risks that need to be addressed in a timely manner, considers response policies at the Risk Management Conference, and conducts proactive and organized risk management.
Through focused efforts on each of the themes described below, the IHI Group aims to achieve sustainable growth and enhance corporate value.
The IHI Group has announced “the IHI Group ESG Management” in November 2021 and has recognized environmental, social, and governance-related issues as key management themes. In fiscal 2026, the IHI Group established its Medium-to-Longer-Term Direction toward 2040 and continues to pursue ESG-focused management.
Based on this approach, the IHI Group appropriately manages ESG-related risks (ESG risks) as key management risks through its internal organizations and various activities centered on the Risk Management Conference and the ESG Management Promotion Committee. The IHI Group’s risk management activities cover ESG risks, which are monitored, supervised, and evaluated by its Board of Directors.
Risks associated with business activities are managed by the respective business units, while risks common across the Group are managed by the Group Risk Management Divisions. Specific risk management activities are incorporated into measures formulated by the business units and the Group Risk Management Divisions and implemented according to plan. The results of risk management activities are reflected not only in the performance evaluations of general managers of these business units and the Group Risk Management Divisions, but also in those of managers and employees, based on the implementation status of these measures.