Governance

• Corporate Governance
• Compliance
• Risk Management
• Business Continuity Plan (BCP)
• Strengthening Information Security
• Supply Chain Management (CSR Procurement)
• Communication with Shareholders and Investors

The Dexerials Group regards risk management as the foundation for sustainable growth and enhancement of corporate value. In a rapidly changing environment, we view risk as “uncertainty that affects the achievement of business goals.” We not only avoid risk, but also use it as an opportunity to establish competitive advantage. In order to continue providing value to stakeholders, we are building a resilient corporate constitution by practicing aggressive risk management.

The Dexerials Group has established a structure in which the Board of Directors is the highest supervisory body and an executive officer appointed by the Representative Director is the Chief Risk Management Officer. In fiscal 2025, Dedicated Risk Management Division was reorganized as an entity under the direct control of an executive officer, which is responsible for formulating company-wide policies, unifying evaluation criteria, monitoring and supporting risk management activities, and promoting “aggressive risk management” to further enhance effectiveness.
The Dexerials Group’s risk management structure is based on the “three-line model.” As the first line of defense, business units and headquarters act as risk owners and manage risks in their daily operations. As the second line of defense, the Dedicated Risk Management Division and the Risk Management Committee are responsible for progress management and support across the board, while the Dedicated Risk Management Division carries out company-wide coordination for risks in specific areas. As the third line of defense, the Internal Audit Division evaluates the effectiveness of the structure from an independent standpoint and reports to the Risk Management Committee and the Board of Directors.
As a result, a system is realized in which supervision, execution, and auditing complement one another.

Since the internal and external environment constantly changes, the Risk Management Committee spearheads risk management, following the process outlined below, so that countermeasures can be implemented in a timely manner.

Risk Management Structure and Process

In fiscal 2024, the Dexerials Group defined a “four-quadrant framework” for risk treatment in order to accurately respond to changes in the environment, and established a systematic risk treatment system. In addition to the identification and response to “priority risks” that have been implemented so far, this framework will enable effective risk treatment.

The Dexerials Group designates risks that exceed a certain threshold in its risk assessment as “priority risks” and addresses them as the most important issues for the fiscal year. For priority risks, the Dedicated Risk Management Division formulates and monitors an annual risk mitigation plan, which the executive officer periodically confirms, gives instructions for corrective action, and reports to the Board of Directors. Furthermore, the Audit Division also assesses the risk situation and evaluates the effectiveness of the management system. Through these activities, we continue to strengthen management of priority risks.

The Dexerials Group has established a response system based on the “four-quadrant framework” described below according to the nature of risks. Site-specific and department-specific risks are handled promptly with expertise (Quadrant 1), while the Risk Management Committee is responsible for company-wide coordination of cross-functional risks (Quadrant 2). Moreover, the Dedicated Risk Management Division and external experts will work together to strengthen our ability to respond to emerging risks associated with social change and technological innovation (Quadrant 3). Strategic risks directly related to management strategy are then addressed at the division head and executive officer level (Quadrant 4). This framework promotes agile and effective risk treatment in a rapidly changing business environment.

Four-Quadrant Framework for Risk Treatment

We have identified the following risks that, if manifested, could affect the Group’s business operations, performance, and social credibility, and countermeasures for such risks. Risks are identified in conjunction with the Mid-Term Management Plan, and progress is regularly managed and reviewed as necessary.
We will strive to avoid the occurrence of risks through risk management functions, and when they do occur, we will respond appropriately to minimize their impact and use them as opportunities.

• *1PFAS: Per- and polyfluoroalkyl substances
• *2SOC: Security Operation Centers

List of Major Corporate Risks（PDF）

• Sustainability Management

• Environmental Measures

• Relationships with Society

• Sustainability TOP