In an age of uncertainty, risks surrounding a business continue to grow more diverse and complex. The most pressing risks include shifts in the world’s political and economic landscapes, numerous international conflicts, environmental shifts brought by climate change, the growing sophistication of cyber-attacks with the advance of the digital transformation, and human rights issues such as forced labor.

As a group of companies engaged in manifold businesses around the world, the TOPPAN Group views accurate detection, appropriate management, and steady prevention of critical, high-impact risks to be of paramount importance. The TOPPAN Group has therefore established a framework for ensuring appropriate management structures and procedures within the Group, with specific divisions (corporate function divisions of TOPPAN Holdings) designated as the second line of defense responsible for each of the most relevant risks. We comprehensively confirm risks of high importance across the entire Group through annual risk assessments by the first line of defense (operating companies) and the second line. After confirming the results of the risk assessment by the first line of defense, the divisions in the second line give directions and instructions as appropriate as part of a PDCA cycle for risk management.

The recently established Risk Management Implementation Committee and Risk Management Committee will share information on material risks so that it can be applied in management of the Group. This information includes important trends in external conditions, the status of risk management within the Group, and the status of measures to prevent reoccurrence of risks that have been realized. Risk-related issues (discussion topics) that the entire Group should address on a priority basis are clarified, and the Risk Management Implementation Committee takes the lead in examining and monitoring inherent risks and risk countermeasures.

When a risk actually arises, we immediately collect the necessary information and take comprehensive and strategic countermeasures under our risk management framework to minimize losses, ensure business continuity, and maintain the trust of society.