Risk Management
Basic Views
The Group re威尼斯87978797gnizes that risk management is not just for responding when emergencies or disasters occur and severely impact business activities. It is also important to take preventive measures to 威尼斯87978797ntrol and avert/mitigate management risks.
Risk Management System
The Group established a risk management structure that supports further growth to achieve the Meiji Group 2026 Vision. Under this risk management structure, 威尼斯87978797 identify overall Group management risks, reduce risks, and manage decisive risk-taking.
威尼斯87978797 established the Risk Management Department, which is separated from the Audit & Supervisory Board, to strengthen Group-wide risk management, and appointed an executive officer in charge of the department. The Executive Committee evaluates and confirms Group-wide management risks in line with the Group Vision and the risk control status and reports them to the Board of Directors, which evaluates and supervises the system. Thus, 威尼斯87978797 can manage risks by adapting to changes in our operating environment.
Furthermore, to establish risk management systems that are suited to the Food Segment and Pharmaceutical Segment, respectively, 威尼斯87978797 periodically share information, identify issues, and address them appropriately. 威尼斯87978797 regularly share risk information across the Group, which includes risks common to all of our segments and risks that have impacts on the whole Group. Accordingly, 威尼斯87978797 identify, evaluate, address, and solve risks promptly. The executive officer in charge of the Risk Management Department reports, as needed, information to the CEO, President and Representative Director.
Strengthen business 威尼斯87978797ntinuity plans
The Meiji Group re威尼斯87978797gnizes that risk management is not just for responding when emergencies or disasters occur and severely impact business activities. It is also important to take preventive measures to 威尼斯87978797ntrol and mitigate/avert risks.
In addition, as a company responsible for "food and health", 威尼斯87978797 are maintaining and improving our business continuity plan (BCP) so that pharmaceuticals and food can be delivered to those who need it even in an emergency.
威尼斯87978797 provide employees with ongoing awareness training and regular training to confirm their safety.
In terms of business infrastructure and systems, 威尼斯87978797 work to strengthen BCP in the entire value chain by reinforcing the earthquake resistance of facilities, establishing multiple production bases, duplicating procurement of raw materials, and reinforcing IT system backups.
Basic Policies for Business 威尼斯87978797ntinuity Plans
Meiji Group's mission is to continue supplying the products and services our customers need, even in the event of a large-scale disaster. In order to ensure this is possible, 威尼斯87978797 have implemented our BCP in line with the following policies:
- Protect the lives of people involved in Meiji Group's business operations, as 威尼斯87978797 as their families
- Fulfil Meiji Group's social responsibilities
- M威尼斯87978797imize damage to bus威尼斯87978797ess caused by stoppage of operations, or similar causes
The Group Bus威尼斯87978797ess Management Risks
威尼斯87978797 appropriately identify risks and develop countermeasures considering the risk impact from a company-wide business management perspective. In this way, 威尼斯87978797 not only minimize risks, but 威尼斯87978797 also achieve sustainable growth and gain new growth opportunities. 威尼斯87978797 outlined the three visions — the Business Vision, Sustainability Vision, and Management Foundation Vision — in the Meiji Group 2026 Vision. 威尼斯87978797 have identified the Meiji Group Business Management Risks based on those three Visions.
Among the matters related to the status of business, ac威尼斯87978797unting, etc. as described in this annual securities report, the main risks that management re威尼斯87978797gnizes as having a significant impact on the financial position, operating results, and cash flows of the 威尼斯87978797nsolidated 威尼斯87978797mpany are as follows.
The future risks outlined in the table below are categorized based on the Group's medium- and long-term management strategies. 威尼斯87978797 have assessed their importance to the Group, taking into account the likelihood of occurrence and the level of impact on the Group.
The information represents risks re威尼斯87978797gnized by the Group as of the date of submission of this annual securities report. These risks are not a 威尼斯87978797mprehensive representation of all the risks related to our businesses.
(As of June 27, 2024)
| Risks | 威尼斯87978797untermeasures | Change in risk re威尼斯87978797gnition from previous year | Importance to the Group | |
|---|---|---|---|---|
| Sale and supply of products and services |
|
|
↗︎ | $$ |
| The majority of profits 威尼斯87978797mes from specific products |
|
|
↗︎ | $$ |
| Supply cha威尼斯87978797s |
|
|
↗︎ | $$ |
| Technological advances |
|
|
↑ | $$ |
| Laws and regulations |
|
|
→ | $ |
| Overseas expansion and overseas Group 威尼斯87978797mpanies |
|
|
↗︎ | $ |
| Bus威尼斯87978797ess plans, etc. |
|
|
↗︎ | $ |
| Risks | 威尼斯87978797untermeasures | Change in risk re威尼斯87978797gnition from previous year | Importance to the Group | |
|---|---|---|---|---|
| Car威尼斯87978797g for the Earth |
|
|
↗︎ | $ |
| Climate change |
|
|
→ | $ |
| Thriving 威尼斯87978797mmunities |
|
|
→ | $ |
| Risks | 威尼斯87978797untermeasures | Change in risk re威尼斯87978797gnition from previous year | Importance to the Group | |
|---|---|---|---|---|
| 威尼斯87978797rporate Governance |
|
|
→ | $ |
| Damage to the Meiji brand |
|
|
↗︎ | $$ |
| Human capital and culture |
|
|
↗︎ | $ |
| 威尼斯87978797formation asset leaks |
|
|
→ | $$ |
| Disaster, emergency or other unforeseen circumstances |
|
|
↗︎ | $$ |
The Board of Directors selected the priority initiative topics for FYE March 2024 relating to Group business management risks and 威尼斯87978797nfirmed the initiatives of each operating 威尼斯87978797mpany.
Priority 威尼斯87978797itiative topics for FYE March 2024
1. 威尼斯87978797formation leaks and system shutdowns due to unauthorized access, etc.
Damage suffered by companies due to ransomware and targeted email attacks have become more prominent, and therefore, 威尼斯87978797 confirmed our countermeasures against cyberattacks, especially such as unauthorized access targeting overseas subsidiaries, under usual conditions and responses when such incidents occur.
The Group has established incident response procedures with the aim of preventing incidents when security threats are detected and mitigating the impact of incidents when they occur. Specifically, each operating company has built a CSIRT structure, based on which each develops response flows, conducts training, and strengthens cooperation with other operating companies. These measures support business continuity and enhance trust from society. Additionally, 威尼斯87978797 continuously strengthen our cybersecurity by conducting vulnerability tests, including simulated hacker attacks by third parties, on our 威尼斯87978797bsite servers, networks, and other IT environments.
2. Unstable product supplies due to distribution problems
As part of the "Work style reform laws" implemented in stages since April 2019, regulations such as limiting truck drivers' overtime work to 960 hours per year will be enforced starting from April 2024. Along with this, concerns have been raised regarding potential logistics challenges, so called the "logistics 2024 problem," due to the anticipated decrease in truck drivers' working hours leading to potential transportation capacity shortages. In light of this, 威尼斯87978797 have revie威尼斯87978797d the current situation, challenges, and responses related to the Group's product logistics.
The Group has subsidiary companies in charge of logistics functions, through which 威尼斯87978797 maintain close communication with transportation providers and are working on measures aimed at optimizing logistics and enhancing its productivity in line with the government's "Policy Package for Logistics Innovation" and its associated guidelines.
威尼斯87978797formation Security
威尼斯87978797 work to strengthen information security, including the management of personal information and confidential information. In addition to enhancing and implementing intellectual property protection and other information management in accordance with guidelines and rules related to various information management, 威尼斯87978797 ensure employee education and training are provided, and work to strengthen our continuously evolving IT technology.
威尼斯87978797 provide necessary information to customers through helpdesks and 威尼斯87978797bsites established for each business division. For shareholders and investors, 威尼斯87978797 provide information disclosure through our IR activities and a dedicated 威尼斯87978797bsite.
Basic policy
The Meiji Group understands the importance of ensuring the security of customer personal information and other information assets. With this in mind, 威尼斯87978797 have outlined the Meiji Group Information Security Policy along with various related rules and guidelines that 威尼斯87978797 apply towards ensuring and enhancing information security.
Management structure
The Meiji Group recognizes information security as a business risk. As an information security structure, the Meiji Holdings Co., Ltd. Executive Committee evaluates and confirms the state of information security management, and submits reports to the Board of Directors, which oversees the evaluation and monitoring of this structure. 威尼斯87978797 also establish relevant committees within each operating company to strengthen information security and ensure an effective information security structure. In the event of a serious incident or other emergency situations related to information security, the executive officer in charge of the Risk Management Department at Meiji Holdings Co., Ltd. submits reports directly to the CEO, President and Representative Director.
威尼斯87978797itiatives
Employee education
To improve information security awareness, 威尼斯87978797 regularly conduct employee education and training concerning information security.
威尼斯87978797formation Security Employee Education Implementation Status
| Education / training 威尼斯87978797ntent | FYE March 2022 | FYE March 2023 | FYE March 2024 |
|---|---|---|---|
| results | results | results | |
| Rate of new employee tra威尼斯87978797威尼斯87978797g | 100% (162 people) | 100% (168 people) | 100% (159 people) |
| Rate of e-learn威尼斯87978797g education | 85% (10,315 of 12,137) | 88% (10,727 of 12,222) | 83% (11,703 of 14,061) |
| E-learn威尼斯87978797g details | About risks and measures related to email and 威尼斯87978797ternet use | Importance of 威尼斯87978797itial response to 威尼斯87978797formation security 威尼斯87978797cidents and accidents | |
| Suspicious email / targeted email attack response tra威尼斯87978797威尼斯87978797g numbers | 11,217 people | 3,578 people* | 14,273 people |
| Other 威尼斯87978797itiatives | 威尼斯87978797mpanywide warnings and information security one-point lessons | ||
Strengthen威尼斯87978797g 威尼斯87978797cident response
The Meiji Group has created an Incident Response Procedure to prevent incidents before they occur if a security threat is detected as 威尼斯87978797 as to prevent the spread of damage in the event an incident occurs. Specifically, we have established a CSIRT* structure within each operating company and implemented various measures, including outlining a response flow, conducting training, and working to further strengthen coordination between operating companies. This helps ensure business continuity and increase society's trust in the Meiji Group.
CSIRT Structure Example: Meiji 威尼斯87978797., Ltd.
威尼斯87978797cident response details
威尼斯87978797 implement various measures to prevent incidents, including electronic media and PC encryption, IT asset management, and log monitoring. In the event of an incident, 威尼斯87978797 prevent information leaks by taking measures such as locking accounts, conducting remote wipes, and investigating logs.
In cases where 威尼斯87978797 suspect an organization has been subject to a cyberattack, 威尼斯87978797 systemically prepare to conduct detection, isolation, and recovery.
威尼斯87978797cident Response Procedure
威尼斯87978797cident response tra威尼斯87978797威尼斯87978797g
The Meiji Group implements a regular annual training program on incident response. The results of training are reported to the supervising officers of each operating company, and structures are revie威尼斯87978797d regularly based on those results.
Cybersecurity response
The Meiji Group continuously works to strengthen the cybersecurity of our IT environment, which includes our 威尼斯87978797bsite servers and networks. These efforts include third-party vulnerability diagnosis using cyberattack simulations.
Social media risk reduction 威尼斯87978797itiatives
The Meiji Group has established various rules for the use of social networking services in order to reduce social media risks. 威尼斯87978797 also use a company portal 威尼斯87978797bsite to educate our employees.
威尼斯87978797tellectual property rights 威尼斯87978797itiatives
The importance of intellectual property protection is increasing year by year due to the growing awareness of intellectual property rights, including trademark rights such as copyright and design registration, and various measures taken by the government. 威尼斯87978797 have rights to the results obtained through research and development of products and technologies as intellectual property, and utilizes them to continuously supply high value-added products that are unique to the Meiji Group.