Risk Management

We identify priority key Group-wide risks by conducting a Group-wide risk review in accordance with the risk management process to identify risks in the business areas under the control of each risk owner, and prioritizing them based on the degree of impact and probability of occurrence, etc.

The most important risk identified for fiscal 2024, "Business Continuity Plan (BCP)," has been incorporated into the budgets of all divisions, enabling verification and enhancement of response status from a Group-wide perspective. In addition to the traditionally recognized BCP risks such as major accidents and natural disasters, we have also considered a wide range of issues, including rising international tensions, social demands related to ESG, and cybersecurity, striving to strengthen resilience on a Group and global level.

In fiscal 2025, based on the status of responses to the most important risk for fiscal 2024, the following have been set as key Group-wide risks through the Group-wide risk review.

For key Group-wide risks, in order to flexibly respond to environmental changes and reflect them in our business and strategies in a timely manner, we will conduct periodic Group-wide risk reviews and update them as necessary, including the degree of impact and probability of occurrence. Currently, risks arising from U.S. trade policy developments have emerged, and the Group is continuously monitoring their impact from a company-wide perspective and taking appropriate measures as necessary.

In fiscal 2025, based on the Group-wide risk review, we further organized and classified the key Group-wide risks from the perspectives of financial and non-financial aspects and risk management time frames. As a result, five priority risks were selected for the Mitsui Chemicals Group to manage.

Risk owners have been assigned to each of these risks. Each risk owner is responsible for visualizing the Group-wide risk management status for their assigned risk, providing advice to relevant areas as needed, and reporting to the Risk Management Committee. In addition, by consolidating the risk management policies of the respective risk management owners, risk owners aim to ensure consistency and uniformity across the organization, thereby enhancing management efficiency and achieving better outcomes.

The five priority risks identified include not only those requiring urgent action but also those that demand focused attention from a long-term perspective to achieve the Mitsui Chemicals Group’s corporate philosophy and Long-Term Business Plan, VISION 2030. For example, while the information security risk is recognized as an urgent issue that could threaten the continuity of the Group, the risk related to the execution of the carbon neutral strategy has been identified as material topics directly linked to our corporate philosophy. It represents an opportunity that is essential for realizing VISION 2030, and therefore requires proactive engagement from this point forward. All of these risks are considered to be cross-functional in nature and should not be addressed by individual divisions alone, but rather managed through coordinated efforts across the entire Group.

Following discussions at the Risk Management Committee on appropriate management approaches tailored to the characteristics of each risk, it was determined that the information security risk, due to its urgency and the need for efficient visualization of cross-functional initiatives, will be incorporated into the annual plans of all divisions in fiscal 2025. Specific measures will be formulated, and progress will be reviewed by the Risk Management Committee. For the other four risks, executive officers with specific titles responsible for individual business or functional strategies have been appointed as risk owners, ensuring that risk management is integrated with strategic execution.

In red: Priority risks to be managed