Risk Management

The Foster Group is focused on predicting risks and taking preventive measures so that such risks will not materialize. They also focus on minimizing damage to the Company should a risk develop and materialize, resulting in the occurrence of danger. Specifically, we are working to make the risk control matrix (RCM) framework more sophisticated and to reinforce our structure for managing and sharing information under the basic operating policy of "being prepared for forward-looking risk and crisis management."

As the foundations for “the Foster Group's risk management structure,” we have established the Rules on Risk and Crisis Management and the Risk and Crisis Management Committee with the president as the chairman to identify risks using a checklist, analyze such risks and promote preventive measures on a Foster Electric-wide basis.
In the event of any incidents or accidents, we minimize the damage and restore the situation to our original state as quickly as possible. We also establish a crisis task force, mainly consisting of Risk and Crisis Management Committee members, and take other prompt measures to prevent any recurrence.

The Committee identifies and evaluates risks based on the result of risk reexamination conducted by respective department each year. From among risks, the Committee selects important risk items that it needs to control. We specifically monitor the status of responses to important risk items, top risks that have materialized, and risk topics expected to impact the company in the future, through regular meetings of the Committee, which are held every three months. The risk evaluation result is also referenced during the business policy planning. The Committee reports the status of its activities, the risks faced by the Group, and the measures that have been taken to address those risks to the Board of Directors as appropriate. This enables the Board of Directors to exercise its function of supervising risk management, including advice and guidance based on the specialized knowledge of independent directors. Our important risk items that were monitored in fiscal 2024 included the continuation of the validation and global expansion of the BCP structure, the global reinforcement of the information security management system, suppliers’ business continuity management, and the development of a global logistics system.