Risk Management

Potential risks that the Group faces include factors relating to economic conditions, exchange rates, country risks, price competition, product procurement capabilities, internal brand risks, legal regulation, market risks, major litigation, severance pay obligations, personal information, accidents, the environment, and information management. As part of efforts to create the needed appropriate systems to manage every risk the Group may face, the Company has designated divisions tasked with handling specific risks while appointing risk control officers and managers tasked with spearheading risk countermeasures undertaken by such division.
In the event that a risk materializes, the division responsible for dealing with said risk will immediately make the necessary, appropriate response to minimize damage under the direction of the risk control officers and managers.
In addition, the Company maintains the Risk Management Committee placed under the Sustanability Committee in order to ensure that risks foreseen by the Group are responded to promptly and appropriately.

Under our corporate philosophy of “Everything we do is for our customers," the Kaga Electronics Group operates a company-wide Business Continuity Plan (BCP). Developed in collaboration with relevant divisions and approved by the Board of Directors, the BCP prepares the Group for a wide range of risks that may affect business continuity, including natural disasters, infectious diseases, cyberattacks, and equipment failures.
In normal times, the Risk Management Committee oversees the formulation and promotion of the BCP, comprehensively establishing the structures necessary for business continuity. This includes identifying critical operations, setting recovery time objectives (RTO), preparing alternative sites and backup procedures, and ensuring the backup of information systems and data.
In an emergency, an Emergency Response Headquarters is established at the head office under the President’s direction to promptly ensure employee safety, assess damage, and resume critical operations as quickly as possible. We also place great importance on communicating with customers and suppliers, striving to minimize the impact and maintain the supply chain.
As part of our initiatives, we maintain and update emergency response manuals, reinforce seismic measures at our facilities, secure disaster stockpiles such as food and drinking water, conduct evacuation drills, and establish in-house fire safety and response systems. In addition, each site is equipped with emergency toilets to prepare for potential lifeline disruptions during large-scale disasters.
The BCP is reviewed annually to ensure continuous improvement. Going forward, the Group will continue to prioritize employee safety and make every effort to maintain stable business operations.

Under our corporate philosophy of “Everything we do is for our customers,” the Kaga Electronics Group seeks to deliver even better services. In the event that a major crisis occurs such as a disaster, accident, system failure, or cyberterrorism, that would affect our business activities, the Group will endeavor to ensure business continuity in accordance with the following principles.

1. The Kaga Electronics Group places the highest priority on confirming the safety of all Group executives and employees (including but not
limited to contract and temporary employees; the same applies hereinafter), and their families.
2. The Kaga Electronics Group will continuously enhance our preparedness for potential crises.
3. Should a risk emerge that could significantly impact business continuity, the Kaga Electronics Group will endeavor to resume operations within the predefined recovery time.
4. Should a risk emerge that could significantly impact business continuity, the Kaga Electronics Group will work closely with our customers to maintain and continue business relationships.

All executives and employees shall act in accordance with the Basic Policy on Business Continuity.