Risk Management

Basic Risk Management Policy

The ITOCHU ENEX Group’s businesses entail many different risks which may impact the Group over the short, medium or long term.
We are properly managing these risks by establishing a structure for implementing the following plans and taking related measures.

1. Staying up to date on important risks that may affect our management of our business and discussing, implementing and monitoring measures to address these risks
2. Having a risk management committee that functions as an advisory body regarding the management of business, establishing an organization that is in charge of the handling of risks on a company-wide level and creating and improving related rules and regulations
3. Formulating a business continuity plan to prepare for serious natural disasters and accidents, and educating and training officers and employees

Risk Management Committee

The Risk Management Committee aims to create the best possible systems to achieve business continuity by promptly and correctly dealing with all events and risks that may impede the operation of the Company, so as not to damage public confi dence in, or the corporate value of, the Company. Amid an increase in various risks and their potential seriousness, the Risk Management Committee leads ongoing management enhancement and risk mitigation by identifying and analyzing risks that could have a material impact on management, implementing countermeasures, preventing the materialization of risks and promoting risk awareness.

Systems for Handling Emergencies

The Company has developed an emergency contact network that allows the Company, when an accident occurs or a risk arises in the Group, to quickly obtain accurate information and respond appropriately and, when an earthquake, typhoon, heavy rain or other natural disaster occurs, to quickly grasp the level of damage to the Group’s facilities and distributors, and secure lifelines. As an integrated contact system that connects Group companies, business divisions and the President, routes for reporting “large-scale earthquakes and natural disasters” and “incidents other than disaster” have been developed and are in operation around the clock, 365 days a year.

BCP and Disaster Response Headquarters

The Company has formulated a business continuity plan(BCP), primarily in preparation for major natural disasters. The BCP and Disaster Response Headquarters play a central role in the plan. Headed by the President and with the Chief Compliance Offi cer (CCO) serving as Deputy Head, the headquarters comprises the Chief Operating Offi cers of the Corporate Administration Division. In the event of a major disaster, the members gather at a designated location and lead Company-wide activities to respond to the situation by unifying the chain of command, and enabling systematic cooperation. In addition, the Company has established a backup system for transferring headquarters’ functions to the Kyushu Branch (in Fukuoka) and Chushikoku Branch (in Hiroshima).

Strengthening IT Security

The Company sees management of information security as an important business issue.