ESG Library

Risk Management

The DOWA Group engages in risk management to prevent situations that could have a major impact on its business and to prevent or mitigate damage in the unlikely event such a situation comes to pass. We will continue efforts to enhance our risk management process which involves identifying apparent and potential risks at each operating company, implementing countermeasures, and conducting reviews and audits.

Risks That May Affect the DOWA Group’s Operating Results, Share Price or Financial Position

Description Specific Risks Responses
Market Fluctuation Risks
  • The economy may deteriorate in major markets where our products are utilized and in areas of demand.
  • Industrial frameworks could change, leading to a drop in demand.
  • Diversify risks throughout the Group by building a unique business portfolio comprising multiple businesses with differing market risks and risks involving changes to business structure.
Price Fluctuation Risks
  • Prices of nonferrous metals could drop, or the yen may continue to appreciate for an extended period of time.
  • Minimize price fluctuation risks through derivative contracts (nonferrous metal forward contracts, foreign exchange forward contracts, etc.)
Operational Risks
  • Natural disasters, power outages, accidents, or infectious diseases could cause a significant drop in production.
  • Develop a business continuity plan (BCP) for natural disasters and states of emergency
  • Formulate standardized facility design rules for accident prevention
  • Implement thorough safety guidance and facility inspections and establish a system for sharing information related to safety, operations, and other matters
  • Raise safety awareness through simulated danger training and workshops
Environmental Risks
  • Business activities could generate environmental pollution.
  • Develop environmental management systems at major domestic and overseas plants
  • Implement monitoring using internal standards stricter than those put forth in environment-related laws and regulations
  • Implement periodic inspections to maintain stable conditions at suspended or closed mines and prevent environmental pollution stemming from mine wastewater, depression, landslides, and other mine-related damage
Quality Risks
  • There could be serious quality defects or abnormalities.
  • Obtain ISO 9001 certification at major manufacturing plants
  • Maintain compliance with the quality assurance guidelines established by the Japan Mining Industry Association and other groups
  • Ensure quality of procured products through supplier surveys and audits
Information Security Risks
  • Confidential or personal information possessed by DOWA could be leaked, falsified, or destroyed, etc.
  • Sign non-disclosure agreements and comply with information regulations
  • Introduce and implement multi-factor authentication and other information security systems
Labor Shortage Risks
  • It could become difficult to secure the labor necessary for business continuity at manufacturing bases.
  • Extend the age of retirement, implement workstyle reforms, and establish and enhance systems that enable diverse and flexible workstyles
  • Promote business efficiency and laborsavings by actively utilizing digital technology
Regulatory Risks
  • Environmental and recycling-related laws in Japan and overseas, antitrust laws, or other laws and regulations could be introduced, which cannot be predicted at the present time.
  • There could be an institutionalized introduction of carbon taxes or mandatory information disclosure.
  • Preserve rights in Japan and overseas through legal means
  • Investigate a variety of initiatives to achieve our 2050 goal of carbon neutrality