Risk Management
POLA ORBIS Group Risk Management Policy
The POLA ORBIS Group has identified risk management as a key issue in management, and has constructed a group-wide risk management system, referring to the COSO-ERM framework. The POLA ORBIS Group creates a comprehensive list of risks, assigning priority based on the effects on business and the frequency of occurrence, and offering Group priority risk management. We also respond to risks that spread across the whole Group based on the results of the employee survey.
Risks specific to each brand are managed by creating a priority order at each Group company based on the same process used for selecting Group priority risks.
Crisis Control
In the event of a crisis, we will establish a crisis control system that can respond appropriately and centrally manage information to affect an emergency response, and report to Board of Directors. Each company establishes a special team (response headquarters, etc.) directly under the jurisdiction of the president of each company, at the appropriate level for crisis control.
Crises that occur at each company will be promptly reported to the director in charge at POLA ORBIS Holdings by the president of each company, and from the director in charge to the president and senior management.
POLA ORBIS Group Risk Management System
Group Priority Risk Response System
A risk management group was formed across POLA ORBIS Holdings with the Group Chief CSR Officer as leader, creating a priority order for risks and investigating responses to these risks. Risks for discussion are determined by departments, committees, working groups, etc. that the risks apply to and improvements are made. The Group Chief CSR Officer reports the status of risk management activities to the Board of Directors on a quarterly basis, and the Board of Directors oversees the group's overall risk management. The Board of Directors also verifies the effectiveness of the risk management process once a year and takes further action on risks that have not yet been resolved.
Risk Management Plans for Group Company
Group company's risks are approved by the Group CSR Committee after resolutions at management conferences for each group company, and these risks are reported to the Board of Directors. Monitoring is carried out by the Group CSR Committee each quarter. Risks which have suddenly surfaced after establishing plans are quickly reported to the Board of Directors and measures are taken.
POLA ORBIS Group Priority Issues
In 2020, priority topics included natural disaster risks such as climate change, risks associated with legal revisions, information security risks, and risks associated with diversifying work styles.
Formulation of a Business Continuity Plan (BCP)
The POLA ORBIS Group formulated a business continuity plan (BCP) in connection with initial responses by the respective Group companies based on its experience at the time of the Great East Japan Earthquake in 2011. The POLA ORBIS Group is providing training to verify the effectiveness of its BCP every year.
In 2020, the Group worked to minimize the risk of natural disasters. By checking disaster predictions for business partners related to cosmetics production on the hazard map, we confirmed suppliers related to BCP priority items for POLA and ORBIS, and worked to ensure that the procurement of raw materials for our main products would not be delayed even in the event of a disaster.
At the same time, the POLA ORBIS Group regularly updates its provisional response plans (the identification of prioritized recovery operations and execution plans for them). It has thus built a framework that enables operations to recover quickly after a disaster.
POLA ORBIS Group offices maintaining overseas bases began formulating their BCPs in 2015 as well. Those offices are confirming the safety of office facilities and providing initial response training, such as safety confirmation. They are each aiming to formulate a BCP whose level equals that of the same plan at Group companies in Japan in the future.
POLA ORBIS Group Policies and Initiatives to Sever Relations with Antisocial Forces
The POLA ORBIS Group is taking the initiatives stated below in order to cut off and remove its relationships with antisocial forces to achieve a higher goal of guaranteeing the appropriateness and soundness of its operations. The POLA ORBIS Group Code of Conduct states that the POLA ORBIS Group will confront antisocial groups.
Furthermore, the POLA ORBIS Group created the rule of adding a clause on the removal of antisocial groups to contracts known to all Group companies.
- A written pledge to observe the POLA ORBIS Group Code of Conduct submitted by all Group employees
- Cooperation with police and other specialized external agencies
- Introduction of a clause on the removal of antisocial forces to contracts, etc.
- Advance screenings for preventing transactions with antisocial groups
- Consolidation of information about antisocial groups
- Statement of firm responses to antisocial groups in the POLA ORBIS Group Code of Conduct, which is distributed to all Group employees to educate them and promote understanding
