Risk Management

Recent years have seen the emergence of risks on an unprecedented scale, including infectious disease pandemics, cyber-attacks, international conflicts and natural disasters. Insource Group regularly reviews risks, assessments and countermeasures. We are not afraid of risk, but our attitude is to look at it statistically and make calm decisions. Our risk countermeasures (preventive measures) are as follows.In the event of a crisis (risk materialisation), we respond immediately to minimise the damage.

• ・We will strive to "visualize" potential risks and take appropriate measures to prevent them from occurring.
• ・In the event that a risk does occur, we will work to eliminate or minimize its impact and take appropriate and prompt recovery measures.
• ・We will sincerely consider social needs and demands related to risks, and reflect them in risk management to protect the safety of society and the stability of the Company.
• ・Through ongoing risk management activities, we will foster risk management awareness and improve our risk response capabilities.
• ・We will promptly report risk information and share it with all concerned parties.

In accordance with the Group's risk management regulations, namely the Risk and Compliance Regulations, Sexual and Power Harassment Prevention Regulations, and Internal Reporting Regulations, the Risk Compliance Committee, chaired by Representative Director, President and CEO and, and the Internal Audit Office under the jurisdiction of Representative Director, President and CEO, are playing a central role in the Group-wide risk management activities. 　　　　　

The Risk Compliance Committee recognizes and defines the various risks associated with the conduct of business and classifies them on a matrix, and then continuously checks and adds to the matrix risks that are expected to arise due to new business or changes in the environment. Also, the Internal Audit Office conducts internal audits of the Group and also serves as the administrative office of the Risk Compliance Committee. 　　　　　

In risk management operations, risks are evaluated and classified in a matrix table based on two axes: frequency and importance. Based on this evaluation, we regularly review major risks and update the status of response to each risk, and our Group currently has 10 major risks defined. 　　　　　

Risks to the Business Environment

Risks to the Group's Business

Risk from Competitors

While we believe it is good to develop new services and change business processes on a daily basis to meet the changing needs of society, we also believe it is essential to cultivate a thorough risk management mindset and acquire skills as the foundation for such activities. 　　　　　

For this reason, personnel evaluations include items related to risk management. In addition, we ensure that employees are thoroughly informed and instructed so that any risks that occur are promptly reported to the Internal Audit Office. The business that the risks occurred, their causes, and countermeasures are shared among managers throughout the Group. Furthermore, employees who detect and report risks are given recognition according to the number of such reports. Through these efforts, we strive to prevent recurrence and foster a risk management mindset. 　　　　　

In terms of training, the Group Human Resources Department takes the lead in regularly conducting knowledge and understanding tests on risk management and compliance for all Group employees, and those who fail the tests supplement their knowledge through e-Learning.