PHC Group recognizes the importance of appropriately identifying and assessing the various risks inherent in our business activities and preventing or mitigating them in order to achieve sustainable growth and maximize our corporate value. To that end, we have prepared a risk management system based on our Basic Risk Management Regulations, which stipulate the basic policies, systems, and initiatives for PHC Group regarding risk management. We have processes in place to identify key risks, including management risks, financial risks, legal risks, natural disaster risks, and geopolitical risks, and promote company-wide management and responses.

Risk Management System

PHC Group has established a Risk Management Committee with the purpose of comprehensively managing risk and strengthening our risk management system. The Risk Management Committee is chaired by the COO (Chief Operating Officer), and its members include corporate officers, global business managers, and heads of headquarters departments. The Committee meets four times a year, or more as needed. Together, its members formulate measures to prevent risks from occurring and minimize their impact if they do occur, checks the status of response implementation, evaluates and reviews ongoing risk, and reports to the independent Board of Directors to ensure sustainable business operations.

Employee Voices

At PHC Group, Risk management is not just about crisis response, it is a broader framework.
In today’s rapidly changing society, we ensure business continuity and safeguard corporate value by anticipating and preparing for uncertainties and responding promptly and effectively. Operating globally, we face a wide range of risks, including natural disasters, geopolitical tensions, cybersecurity threats, and technological inheritance.
Recognizing that risks to business continuity can take many forms, each employee is encouraged to view risk management as a personal responsibility and to enhance their awareness. By embedding this mindset into our corporate culture, we aim to build an organization that inspires trust and confidence among our customers.

Kazuto Ikeda Risk Control Section, Sales Planning Department, PHC Holdings

Specific Processes for Business Risks

At PHC Group, we regularly identify and evaluate potential risks that may impact on our business continuity from external uncertainties such as economic trends, regional conflicts, and pandemics to internal risks related to supply chain, production, procurement, and information security. Each business unit and headquarters department constantly assesses and analyzes the significance of potential risks based on potential impact and likelihood of occurrence. For risks deemed to have a high level of importance, we develop response strategies and specific countermeasures, report them to senior management, and promote company-wide initiatives to address them. We also continuously monitor the implementation status of these measures and make adjustments as needed to align with the evolving business environment. In cases where a risk materializes, we respond promptly to minimize damage and implement measures to prevent recurrence.

Among the risks that may impact PHC Group’s business performance or financial condition, we identify and disclose those that may significantly influence investors' decision-making. These risks may include competition, market fluctuations, corporate reputation, and natural disasters, among others. However, these are not the only risks we disclose. We also actively provide information on other matters that we consider important for investors’ decision-making, based on our commitment to proactive and transparent communication.

For further details on business-related and other risks, please refer to the following webpage.

Business risks details https://www.phchd.com/global/ir/risk