Basic Approach

The Toppan Group views the accurate detection and appropriate management of impending risks as a corporate social responsibility.

In keeping with this view, the Group has identified and taken steps to mitigate quality-related incidents, natural disasters, and other types of risk requiring action to limit the possibility of adverse impact on business operations. When a risk actually arises, Toppan immediately collects necessary information and takes comprehensive and strategic countermeasures under the Group’s risk management structure to minimize losses, ensure business continuity, and maintain the trust of society.

Promotion Framework

■ Division-specific Risk Management Structure

In accordance with the Rules on Risk Management, the Toppan Group has set up a risk management structure under which the responsibilities for risk management are allotted to specific divisions in the head office based on the types of risk involved. The directors in charge of each relevant division are responsible for taking measures to prevent, avoid, and correct each risk. When a significant risk requiring action arises somewhere in the Group, the responsible director reports it to the Board of Directors.

Risks to Be Managed and the Relevant Head Office Divisions in Charge

■ Risk Management Liaison Meeting

All of the personnel in charge of risk management in the head office divisions assemble on a regular basis to share information at the Risk Management Liaison Meeting. When a risk actually arises, the responsible persons from relevant head office divisions convene an extraordinary meeting to take necessary management actions and develop preventive measures.

  • ■ Risk Management

    The Toppan Group manages individual risks specific to organizations such as business divisions, subsidiaries, and Group companies.

    Specifically, the Group performs annual risk surveys to determine all types of risk that require action. The frequency and severity of possible risks are assessed, and countermeasures are formulated based on the assessment results. Midway through the fiscal year, the Group monitors the progress of mitigation measures designed at the beginning of the year. As the administration office, the Compliance Department in the Legal Affairs & Intellectual Property Division takes the time every year to identify serious types of risk that could exert significant adverse impact on management. The responsible head office divisions spearhead efforts to plan countermeasures and take comprehensive measures required for the management of the risks determined to be serious. The Director in charge of Risk Management regularly reports the outcomes of the measures taken to the Board of Directors.

    The Toppan Group identified the following 15 types of serious risk in fiscal 2019.

    • Fires or occupational accidents
    • Risks involved in Group control
    • Risks involved in overseas business
      activities
    • Non-performing inventory assets or
      long-term inventories
    • Incidents related to notes or
      accounts receivable
    • Leakage of personal information or
      confidential information
    • Interruption of business operations by
      cyber-attacks
    • Quality-related incidents
    • Soil or groundwater pollution
    • Problems related to labor affairs
      (including long working hours)
    • Damage to human or physical assets
      caused by natural disasters
    • Investment loss
    • Infringements of intellectual
      property rights
    • Legal violations
    • Bribery or corruption