Risk Management

NIPPON PAPER GROUP conducts risk management during normal operation, and in the event of emergencies, with the aim of preventing managerial risks from manifesting and minimizing the impact of those that do occur. All possibilities that may result in a physical or financial loss or a loss of credit or disadvantage to the Group are considered risks to the Group.

Nippon Paper Industries has established its Risk Management Committee, which is chaired by the President and Representative Director under the supervision of the Board of Directors, and meetings are held at least once a year. In normal operations, the committee regularly identifies and evaluates the Group’s risks, deliberates on measures to reduce these risks and responds if they materialize. In an emergency, a Crisis Response Headquarters will be launched.It swiftly carries out initial responses and its business continuity plans (BCPs) in emergencies depending on risks such as earthquakes, typhoons, infectious diseases, and others.
In addition, the respective risks relating to product safety, raw materials procurement, environment, and safety and disaster prevention are examined and discussed in committees chaired by the general managers of the relevant divisions in the Company. They are then reported to the Company's Board of Directors via the Risk Management Committee.

The Risk Management Committee regularly conduct risk surveys at head office , mills, and consolidated and unconsolidated subsidiaries in Japan and overseas. We identify risks that have emerged and will become more important in the future, and based on the results, we recognize the Group major business risks and promote initiatives to reduce them.

To address major natural disasters that have become more frequent in recent years, the Group continues to maintain BCPs based on the business continuity management (BCM) framework it worked to develop in FY2020. At the head office, each department has formulated a BCP, stockpiling food and daily necessities, and adding equipment for the launch of the Crisis Response Headquarters. At the mills, we are working to revise the existing BCPs that assume earthquakes, tsunamis, typhoons, floods, volcanic eruptions, etc., and each Group company has established crisis response regulations.

 

In order to enhance our initial response and crisis management capabilities in the event of an outbreak, we regularly conduct training on the smooth establishment of the Crisis Response Headquarters under the framework of the BCM. Specifically, we conducted online trainings in the event of a large-scale disaster on holidays, and in the event of an Tokyo Inland Earthquake, we transferred some of the functions of the head office to a specific mill and set up a Crisis Response Headquarters.