Risk Management

Risk management and compliance

Daido Steel implements management with the focus on risk management and compliance.

The Company has defined basic specific items relating to risk management in its “Risk Management Regulations”, and has also established a Risk Management Committee, chaired by the president, to deliberate ways to manage risks anticipated in the near future and potential ones within the Daido Steel Group, and submits the matters after deliberations to the board of standing directors and the Board of Directors of the Company for consultation. The Risk Management Committee appoints a director as a company-wide general controlling officer responsible for risk management and compliance.

As a compliance consultation and reporting window, we have appointed a risk management and compliance director and created a compliance office, and established a hot line to an outside attorney. We have also prepared a Daido Steel Corporate Code of Ethics and the Daido Steel Code of Conduct, and taken steps to ensure all employees and Group companies are familiar with their contents. In conjunction with these measures, to prepare for the occurrence of a major accident we have implemented policies to quickly share information with all concerned parties and take prompt and smooth countermeasures, and formulated regulations for emergency countermeasures in the event of a major accident that are aimed at minimizing the impact on of the accident on business activities, and disseminated these policies and regulations to all employees and Group companies.

In order to ensure the reliability of the financial reports, Daido Steel has formulated Internal Control Regulations defining basic matters concerning improvements of the internal systems and the systems of group companies to allow compliance with Financial Instruments and Exchange Act. An Internal Control Committee, established in parallel, monitors the implementation of the foregoing.

Daido Steel will continue to build up the risk management system for the whole of the Daido Steel Group.

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