Initiatives for Risk Management
1. Basic Approach to Risk Management
The PERSOL Group has established a Group Risk Management Regulation and is working as a group with the aim of contributing to the appropriate organizational management and maintenance / improvement of corporate value of the PERSOL Group through risk management activities.
Based on this approach, we will identify risks that hinder the maintenance and improvement of corporate value and the execution of business strategies, and reduce risks by taking appropriate measures. We also believe that preparing to take prompt and appropriate responses in the event of an arising risk will lead to the trust of our customers, business partners and other stakeholders.
2. Risk Management System
With the transition to the SBU (Strategic Business Unit) system in April 2020, we are strengthening our risk management based on the idea that "the first line is the owner of business risk management."
The risk management structure is built on three lines of defense. The concept of each defense line are as follows.
- First Line (Group companies): At the point where risks occur, promotes risk management in business activities and daily activities.
- Second Line (Functional Division): Monitors and supports the risk management activities of each Group company.
- Third Line (Internal Audit Division): Provides reasonable assurance regarding the effectiveness of risk management from a standpoint independent from the First and Second Line.
Regarding the Second Line, the departments in charge of managing following risks are set as below according to the content and nature of the risk. The risk management context is reported to the Group risk management division within PERSOL HOLDINGS and the Risk Management Committee.
- Group-wide risk: Each functional division of PERSOL HOLDINGS manages the risk across the Group (mainly operational risks) for effective group-wide risk measures.
- SBU-specific risks: For risks with SBU-specific business and regional characteristics, a risk management representative (= SBU Internal Control Promotion Manager) is assigned in each SBU to autonomously manage risks within each SBU.
※ PHD = PERSOL HOLDINGS, HMC = Headquarters Management Committee, CFO = Chief Financial Officer, CIO = Chief Information Officer, CHRO = Chief Human Resources Officer, CLO = Chief Legal Officer, GRC = Governance/Risk Compliance
3. Risk Management Committee
The Risk Management Committee was established in April 2020 as a cross-group organization that complements and strengthens the functions of the HMC (Headquarters Management Committee) of PERSOL HOLDINGS.
The committee is chaired by the CLO (Chief Legal Officer), the officer in charge of PERSOL Group's risk management division. The committee members are the CEO (Chief Executive Officer) and other executives, as well as the SBU Internal Control Promotion Manager, who discusses the overall risk management of the Group and significant risks and monitors the context of risk management in the SBU.