Risk Management Sustainability
Basic Concept
There is the risk that a crisis could materially impact our company activities, and we view risk management as an extremely important activity. We have established our Risk Management Guidelines and prepare for various risks for the purpose of preventing crises before they arise and minimizing the impacts on our company and ensuring early recovery if a crisis does arise.
In FY 2024, we identified current risks concerning encounter-based business which we are promoting as a company. We are focusing on implementing risk analysis and strengthening countermeasures for “measures to prevent death and injury at events” and “formulating guidelines for safe and secure operations.”
Top Message About Risk Management
In today’s rapidly changing and highly uncertain world, the Goldwin Group is aiming to realize a new future through various challenges. Properly managing the diverse risks accompanying these changes and transforming them into opportunities is essential for sustainable growth of the Goldwin Group. Failure to correctly identify risks could negatively impact our business and brands.
There are always many risks for us aiming for businesses that coexist in harmony with nature. Understanding the risks and making environmentally friendly choices are important steps in protecting the future.
Risk management must be deeply rooted in our corporate culture, not just a part of operations. Guided by our Purpose “envision new possibilities for humanity in nature,” we will take on challenges with no clear answers through proper risk management.
Takao Watanabe
President & CEO
Promotion Framework
We have established the ERM Committee as a supervision committee for company-wide risk management, and we are constantly striving to manage risk by anticipating all potential risks. As organizations under the ERM Committee, we have established various internal committees, including the BCM Committee and the Information Security Committee to provide a system to effectively conduct risk management. It is also important to uniformly collect information on crisis management and make decisions comprehensively. We have therefore made General Affairs Department of the General Administration Headquarters serve as headquarters for crisis management, with the General Affairs Department executing the duties of disaster prevention/mitigation and initial response to crises in normal times.
The ERM Committee is chaired by the General Manager of the General Administration Headquarters, and members are appointed from each headquarters. Committee meetings are held three times a year, where BCM operations, education and training, and the progress of measures taken are shared and necessary measures are discussed.
In the event of a crisis, it is promptly reported to management, primarily to directors, and a Crisis Management Division is set up to deal with the crisis. The Crisis Management Division gathers and analyzes information, examines countermeasures and the policy to prevent reoccurrences, and establishes the structure to give instructions and orders to officers and employees on the actions required to resolve the crisis.
Business Continuity Management (BCM)
If a natural disaster occurred such as an earthquake, large typhoon, or volcanic eruption, or an event such as an infectious disease or large-scale prolonged power outage that would impact the continuity of economic activity, or an incident such as an information leak, it could exert enormous impacts on our business activities in the medium- to long term.
We have implemented a business continuity plan (BCP) since formulating it in FY 2021. It is designed to anticipate these kinds of emergencies in advance and to ensure the safety of employees and their families as the top priority in the event of a crisis, while contributing to the stability of society and the community, and fulfilling our social responsibility through business continuity.
A business continuity management (BCM) framework has been established under the ERM Committee as a subcommittee, promoting BCP formulation, preemptive measures, promoting education and training, and conducting periodic inspections and corrective actions during normal times. The General Manager of the General Affairs Department of the General Administration Headquarters serves as the secretariat. The BCM Committee keeps track of progress in BCM by the secretariat, follows up on preventive measures and corrective actions, and supervises the planning and implementation of education and training.
We also created and disseminated index procedures for operations defined as Recovery Time Objective (RTO, deployed the BCP to Group companies, and replaced the safety confirmation system). We conduct BCP drills twice this year.
[Basic policy]
Our highest priority is the life and safety of our employees. We also fulfill our responsibility to supply our customers and fulfill our social responsibility in order to continue being a sports apparel manufacturer trusted and counted on by all people who love sports.
In addition, as a member of society, we collaborate with the national and local governments and cooperate as much as possible in supporting the livelihoods of our employees and their families as well as in rescue and relief efforts for community residents. Furthermore, we contribute to society by continuously working to strengthen our business continuity capabilities for achieving sustainable growth and development, aiming to increase our corporate value.
[Objectives]
- Human life is our highest priority, so the safety of our employees, their families, and society is first and foremost (including measures to prevent infection and the spread of infection, etc. in the case of infectious diseases).
- We contribute to the safety of local communities. (Prevention of social and economic disruption) We will resume the provision of products and services as quickly as possible to minimize the impact on customers and society.
We will consciously conduct support activities as a sports apparel manufacturer as part of manufacturing, sales, and public relations, which will lead to the maintenance and improvement of our corporate value. - By deciding on contingency plans, we can delegate authority and respond quickly in the event of an emergency, thereby ensuring the survival of the company and organization, maintaining management, and securing earnings.
Preparing for Threats and Anticipated Risks
Among various threats such as large-scale earthquakes, infectious diseases, volcanic eruptions, fire, and terrorist attacks, our risk assessments are focused on large-scale earthquakes as the highest priority threats we need to prepare for. We do, however, continue to consider other threats as required in the course of continuous improvement. In addition, we organize and analyze the risk situation at each of our relevant locations, and prepare issue management charts and manage progress in terms of issues, necessary preemptive measures, and improvement status.
Future Issues
We will strengthen collaboration with various internal committees and divisions with the aim of establishing a company-wide risk management system. We will also consider incorporating subsidiaries into BCM, with the ultimate goal of establishing a risk management system for the entire Goldwin Group. Furthermore, we will promote education and training as a specific measure, as well as unify awareness within the company and enhance our information communication system to reinforce our company-wide disaster prevention system.