G: Risk management

• Challenge
• Our policy
• Responsible executive (as of April 2023)
• Action promotion system
• Significant risks
• Activities

Challenge

Our policy

The risks surrounding the Toyo Tire Group that could impact our business activities are currently diversifying and becoming more complex. We engage in risk management to identify, evaluate, classify and address these potential risks throughout the organization, with the aim of securing continuous growth and corporate value that will enable us to fulfill our responsibilities to all stakeholders.
We regularly investigate and manage potential risks across the entire value chain of our business. Of these risks, those that could have a serious impact if they were to occur or manifest are identified as significant risks, and prioritized with continuous and strategic risk management.
We have built a company-wide risk management system in which the Crisis Management Committee, which oversees risk management, reports periodically to the Executive Committee, the decision-making body for business execution.
We have also established risk management regulations, which guide the supervisory departments responsible for each issue in identifying, evaluating and addressing risk at every stage of our business activities, as well as in regularly performing a cycle of monitoring and review.

Responsible executive (as of April 2023)

Corporate Officer and Vice President of the Corporate Headquarters

Action promotion system

Under the jurisdiction of the Crisis Management Committee, we have established a risk management team that performs quarterly monitoring of risk management at each Group company though special committees such as the Sustainability Committee, as well as all Toyo Tire Corporation headquarters and administrative departments.

Significant risks

We define significant risks as those that would have a serious impact on both current and future Group business activities, and have made them of top priority to address. Significant risks will be reviewed as necessary in light of changes in the external environment or Group business conditions.

Activities

From fiscal 2023, we are conducting quarterly monitoring of risk management at each Group company through special committees such as the Sustainability Committee, as well as all Toyo Tire Corporation headquarters and administrative departments. These bodies investigate and confirm if risk management systems are operating effectively, and report the status of the systems to the Executive Committee through the Crisis Management Committee.