Risk Management
The Group’s perpetual development depends on precisely addressing a variety of risks that have major impacts on business. Through communications with stakeholders, TOK strives to identify and prevent a variety of potential risks. If a risk emerges, the company will implement the necessary measures to minimize the negative impacts of the risk. In these and other ways, TOK maintains and improves its global risk management system.
Risk Management System
The TOK Group Risk Management Committee plays a central role in reviewing the risk management system and formulating risk management policy. To appropriately handle the different risks, TOK established the TOK Group Risk Management Rules and the TOK Group Emergency Response Standards. Based on the Rules and the Manual, the company implements preventive measures at normal times by identifying the risks that may result in serious outcomes, analyzing such risks, and determining, implementing, and evaluating actions required, among other risk management activities in the categories of management risks, business risks, environmental risks, compliance risks, economic risks, social risks, and political risks.
Strengthen the risk management structure
The Group reinforced the recognition of the importance of risk assessments in corporate activities and crisis management when risks materialized in the wake of the Great East Japan Earthquake and established a specialized committee to respond to the disaster. Subsequently, as globalization expanded, TOK expanded the form and renamed it the TOK Group Risk Management Committee as part of the building of a system to respond to a wide range of risks that include disasters, accidents, and environmental risks across the TOK Group.
In the fiscal year ended December 2024, efforts were made to reduce risks that were considered to have high impacts on business continuity based on risk assessments in the previous fiscal year (such as risks in material supply and major earthquakes). In April 2024, TOK established the new ERM Department with the aim of comprehensively managing risks across the entire Group, and the Group is strengthening its efforts to respond to rapidly changing economic security and related issues. The Group will continue to promote risk reduction activities for sustainable development.
Enhance the safety confirmation system
The Group believes that the business continuity plan (BCP) begins with the safety of all employees. In Japan, TOK operates a safety confirmation system to confirm whether Group employees are safe in the event of natural disasters, including major earthquakes. Safety confirmation drills are conducted every year to ensure the smooth and efficient operation of the system and to raise awareness among all employees. In the fiscal year ended December 2024, multiple drills were implemented, and the response rate was maintained at high levels in all sessions
Large-scale natural disaster preparedness
Based on lessons learned from the Great East Japan Earthquake and the Kumamoto Earthquake, TOK established a BCP that envisions damage simultaneously striking the headquarters and multiple sites from earthquakes directly beneath the greater Tokyo area. TOK reviews its BCP every year to ensure that it is grounded in actuality by estimating actual damage that may disrupt order taking and placement, product shipment, and essential utilities.
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