Risk ManageYY易游平台t

In accordance with the Companywide Risk ManageYY易游平台t Regulations and referring to the guidance issued by Committee of Sponsoring Organizations of the Treadway Commission (COSO) as an international standard, we identify factors that hinder the KOBELCO Group’s sustainable developYY易游平台t and enhanceYY易游平台t of corporate value and take measures to address them. As targets for Compaywide risk manageYY易游平台t, we designate risks that have a material impact on the Group and stakeholders and require a Groupwide response as Top Risks and Significant Risks. These Top Risks and Significant Risks include ESG risks such as human rights, safety manageYY易游平台t, climate change, and natural disasters.

The president is the person ultimately responsible for the Group’s overall risk manageYY易游平台t, and the director who oversees the Internal Control and Audit DepartYY易游平台t is the person responsible for overseeing risk manageYY易游平台t across the Group. Meanwhile, individual risks are managed by the risk owners as the persons responsible for Groupwide manageYY易游平台t activities of each risk, and the countermeasures to these risks are impleYY易游平台ted by the heads of businesses and the executive officer responsible for the Head Office under a risk manageYY易游平台t system that encompasses the entire organization. The Risk ManageYY易游平台t Committee has been established as an auxiliary body to the Executive Council. The committee undertakes tasks such as formulating and evaluating basic policies concerning risk manageYY易游平台t in general, planning specific policies concerning important issues in risk manageYY易游平台t, and approving and evaluating action plans for measures to reduce Top Risks and Significant Risks. The person responsible for overseeing risk manageYY易游平台t across the Group is appointed as the committee chair and all of the risk owners are appointed as the committee members. The status of the activities of the Risk ManageYY易游平台t Committee are periodically reported to the Executive Council, and instructions are given to the risk owners based on the results of discussions at the Executive Council. The risk manageYY易游平台t system, headed up by the president, is operated independently from the Audit & Supervisory Committee.

Under the direction of the risk owners, the manageYY易游平台t of individual risks is carried out by the person in charge of risk countermeasures impleYY易游平台tation in each division in the following cycle: identifying risks, formulating risk manageYY易游平台t plans, impleYY易游平台ting the plans, assessing results, and identifying required improveYY易游平台t for the following fiscal years. To ensure the effectiveness of our activities, the Board of Directors manages and supervises activities to address Top Risks and Significant Risks, including ESG risks. They review the annual results of activities in respective business divisions for the improveYY易游平台t of the plans for subsequent fiscal years. This approach to risk manageYY易游平台t is also actively employed at Group companies. In the event of an urgent and serious risk of loss with respect to risks including Top Risks and Significant Risks, we will appropriately communicate information and make decisions according to internal rules based on the Contact System in Case of Risk Occurrence and take appropriate measures to minimize damage.

With regard to KOBELCO Group business risks, matters that could have a material impact on the decisions of investors are described in the YY易游平台nual Securities Report.

• YY易游平台nual Securities Report (in JapYY易游平台ese Only)