Risk Management Framework and System
The Oji Group undertakes its business activities with the high ethical standard laid out in the Oji Group Corporate Code of Conduct, and implements appropriate risk management practices. In response to the rapid expansion of the areas in which we operate businesses, we will reinforce our risk management structure globally to ensure business continuity and the steady development of our businesses.
Developed by the Oji Group under the supervision of the Board of Directors, the Oji Group has established Group Risk Management Regulations and it works to manage risks in the flow described below.
The Directors and Corporate officers of Oji Holdings are responsible for reporting risks in the businesses and divisions under their control to the Group Management Meeting, and important risks are also reported to the Board of Directors.The Oji Holdings Board of Directors reviews the effectiveness of its risk management process annually.

The Oji Group's risk management system is structured as shown in the diagram below and operates separately from the Audit & Supervisory Board and the Internal Audit Department.
The Audit & Supervisory Board and the Internal Audit Department also audit the status of risk management.

The Oji Group categorizes major risks that may have a material effect on its financial position, etc. into three groups: risks regarding long-term issues, risks associated with its management strategies and risks arising from the execution of business. At the same time, the Group takes the following measures to address each risk group.
The icons to the right represent material issues
Type of risk | Content of risk | Main countermeasures against risks | |
---|---|---|---|
Risks regarding long-term issues |
Climate change |
The Task Force on Climate-related Financial Disclosures (TCFD) | |
Pandemic
|
Risk of the health of employees being harmed or the temporary suspension of operations caused by the global spread of infection similar to the COVID-19 pandemic |
|
|
Risks associated with our management strategies |
Structural changes in demand arising from innovation Structural changes in demand arising from innovation
|
Risk of structural changes in demand arising from the progress in digital transformation (DX), which significantly changes people’s lifestyles and business activities. |
|
Fluctuations in demand |
Risk of a decline in demand for products due to the fluctuation of domestic business and the continuing decrease of the population |
|
|
Fluctuation of global market conditions Fluctuation of global market conditions
|
Risks associated with the procurement prices of raw materials and fuels which are influenced mainly by the fluctuation of demand, changes in countries’ trade policies and wars Risk that the sales price of pulp is influenced by global market prices |
|
|
Overseas business |
Geopolitical risks, including war, political or social instability, decelerating economic growth, the revision of laws, regulations or tax systems, destabilizing financial conditions, human rights issues, are present in overseas markets where the Group operates |
|
|
Risks arising from the execution of business |
Occurrence of disasters, etc. Occurrence of disasters, etc.
|
Risk of production bases and supply chain in and outside Japan being affected by natural disaster Risk of fire, occupational accident, environmental accident or other unexpected circumstance occurring |
|
Laws, regulations and other rules Laws, regulations and other rules
|
Risk of not being able to comply with laws or regulations of various countries, and risks related to the revision or amendment of laws or regulations. |
|
|
Litigations and other actions Litigations and other actions
|
Risk of being a party to litigation, disputes, or other legal proceedings in the course of business |
|
|
Product liability |
Risk of being liable for damages caused by our products |
|
|
Exchange rate fluctuations
|
Risk of the fluctuation of exchange rates affecting product sales prices, the prices of raw materials and other transactions using various currencies |
|
|
Information leakage |
Risk of confidential information being leaked due to willful conduct including external cyberattacks or negligence |
|
Information Security Measures
The Oji Group positions information obtained through its business activities as important assets. We have enacted Information Systems Usage and Risk Management Regulations to respond promptly to changes in the IT environment which is always becoming more complex, and we have established a groupwide system to prepare for cyber threats such as unauthorized access to systems and disasters. The Oji Business Center, as a department that oversees our information system risk management, inspects the information system risks throughout the Group and maintains, manages and improves IT security. In addition, it regularly provides educational activities and information on the latest risk trends that it had acquired to employees using company newsletters and conducts targeted email training so that employees can handle phishing e-mails which are becoming more sophisticated every day. In FY2021, we revised regulations to respond to the changes in work styles, such as the increased use of cloud computing and teleworking during the COVID-19 pandemic. We will work to make sure that these measures take hold and further strengthen our efforts to improve IT security from a global perspective.

BCP
At the Oji Group, we have formulated a BCP*1 for each COMPANY to respond to an emergency when a risk associated with the execution of business materializes. Reviewing the BCPs as necessary, we also engage in BCM.*2 In the event of a serious incident that must be addressed by the Group as a whole, we establish a Group Emergency Headquarters to confirm the safety of employees, investigate the damage incurred, and take prompt measures to continue supplying products to our customers.
- *1 A business continuity plan (BCP) is a plan for continuing business in an emergency such as a disaster or pandemic.
- *2 Business Continuity Management (BCM) is comprehensive and integrated management for ensuring business continuity, including the formulation and continual improvement of BCPs including, for example, the introduction, implementation and review of BCPs.
Building a Group Disaster Control System
We have established the Group Disaster Control Office as a permanent organization to prepare for disasters such as fires, earthquakes, storms and floods. We have formulated rules on the reporting of disaster and accident information, establishing a system that enables us to promptly obtain the most up-to-date information. We also promptly share information on disasters that have occurred within the Group for the implementation of recurrence prevention measures. By holding regular Disaster Prevention Committee meetings and conducting a large-scale safety confirmation drills using the safety confirmation system and disaster prevention drills at each workplace, we work to increase employees’ awareness of disaster preparedness and strengthen disaster preparedness measures.
Locating production bases to diversify risks and flexibly procure raw materials
Oji Group companies have production bases nationwide, from Hokkaido to Kyushu. While proceeding with the consolidation of production bases to enhance competitiveness, we consider risk diversification in the continuation of our business. In addition, to ensure we are able to continue production, we, in principle, procure raw materials from several companies and ensure we are able to flexibly procure materials from diversified sources.
Exploration of infrastructure risks and implementation of measures
The production bases of the Oji Group in Japan explore risks related to earthquakes, heavy rains, typhoons and other natural disasters, and implement measures against them using local hazard maps to simulate the occurrence of disasters such as floods or landslides. For example, we have strengthened waterproofing measures for electrical rooms to prevent the long-term stoppage of operations at plants or mills. We also actively roll out useful measures to other companies in the Group.
Local preparedness for natural disasters and support
In recent years, we have strengthened not only the measures within the Group but also our collaboration with local residents to prepare for the increasingly frequent natural disasters. To date, we have concluded a total of 163 disaster prevention agreements with local governments across Japan. When a disaster occurs, we provide corrugated cardboard beds and various other types of corrugated cardboard products, and also jointly conduct drills for setting up evacuation centers. We provide support in a wide variety of ways, including infection prevention measures.
The Oji Group carries out its production activities to maintain people’s everyday lives around the world by supplying the corrugated containers and folding carton products that support logistics services, hygiene materials such as tissue paper, toilet roll and face masks, as well as printing and communication paper that conveys information.

