Risk Management

Management Structure

The NISSIN FOODS Group has put in place a Comprehensive Risk Management Committee chaired by the chief operating officer (COO), who is executive vice president and representative director. A wide variety of risks are prevented, identified, managed, and addressed through the committee in keeping with the NISSIN FOODS Group Code of Risk Management. In particular, product accidents, business continuity planning (BCP), compliance, and information security are positioned as key risks, each with its own committee, while environmental and safety risks are addressed by bodies set up within the Sustainability Committee. In the event of a serious accident, steps are promptly taken in accordance with manuals to get the situation under control and find a solution.
Risk management processes for the entire Group are evaluated and audited from an independent perspective by the Internal Audit Department.

Specific Activities of the Comprehensive Risk Management Committee

As well as managing risks in an integrated manner, the Comprehensive Risk Management Committee works to identify risks for each responsible department from a Group standpoint and issues instructions for establishing mechanisms to prevent incidents that present a risk. If an event occurs and has a severe impact on the Group, a Group serious incident taskforce is set up to quickly address the incident and put forward measures to prevent a recurrence.
The committee also annually creates a risk map based on risk assessment reports from presidents and chief officers of the Group’s business corporations. Risk maps are configured on two axes—likelihood and impact—and each risk is assessed and classified into one of four stages. The committee then prescribes an action policy based on the results and reports the management status for risks to the Board of Directors. In fiscal 2023, natural disasters and accidents, information security, and human resources were positioned in the risk stage with the highest likelihood of occurrence and the biggest impact.

Factors That May Significantly Influence Investor Decisions

  • (1)Product liability
  • (2)Food safety and security
  • (3)Natural disasters and accidents
  • (4)Compliance
  • (5)Information security
  • (6)Environment
  • (7)Loss of brand value
  • (8)Decline in the fair value of marketable securities
  • (9)Impairment of fixed assets
  • (10)Exchange rate fluctuations
  • (11)Human resources
  • (12)Changes in prices of raw materials
  • (13)Logistics
  • (14)Dependence on specific suppliers
  • (15)Overseas country risk
  • (16)Demographics

Annual Securities Report (Business and Other Risks) p.30 [PDF 3.1 MB]