Risk Management

Heads of divisions of the Daigas Group and affiliates are in charge of managing crisis-related losses by conducting risk-management inspections on a regular basis. Utilizing the Gas Group Risk Management System (G-RIMS), which systematizes self-checkups of risk management, and other systems, each division and affiliate checks if there are any risks and if risk control has been conducted properly regarding each risk item, and it implements follow-up and other measures if necessary.

To be prepared for emergencies, we have established the Rules for Disaster Control and the Business Continuity Plan (BCP).

G-RIMS was introduced by the Daigas Group in 2006 to manage business risks in its daily operations. Under the system, a manager in charge of risk control at each organization and affiliated company checks the implementation of risk-prevention and early-detection measures, devised based on around 50 risk items. The manager is also tasked with identifying risks to be addressed and assessing their potential seriousness before drawing up and implementing response plans and follow-up measures while operating the PDCA (plan-do-check-act) cycle.

The Company’s Board of Directors developed an internal control system which includes systems necessary to ensure that the execution of duties by Directors complies with laws and regulations and the Articles of Incorporation, and other systems prescribed by the applicable Ordinance of the Ministry of Justice as systems necessary to ensure the properness of the Company’s operations. The Company confirms the operating status of the internal control systems on a periodic basis by receiving reports mainly from the heads of organizations regarding a list of items to be confirmed. At the meeting of the Board of Directors held on April 26, 2022, it was reported that the internal control systems were operating in a proper manner.

The ESG Committee promotes initiatives in each area through the Compliance and Risk Management Subcommittee, the Environment Subcommittee and the Social Contribution Subcommittee. Educational materials, including a guide to the Daigas Group Code of Business Conduct, are posted on the intranet at all times to ensure that Directors and employees of the Daigas Group are familiar with the Code and understand it.

We revised the systems of consultation and reporting in light of enforcement of the Amendment Act of the Whistleblower Protection Act (Act No. 51 of 2020) as of June 1, 2022. Effective April 1, 2022, we have expanded the scope of affiliates where the internal reporting hotlines are established, and we have implemented measures to ensure independence for reports involving management.

Initiatives are being undertaken under the organizational risk management structure, responsibility, and authority described above. We have established the Countermeasure Headquarters in response to the COVID-19 outbreak in Japan and abroad to monitor the progress of countermeasures at the Daigas Group and implement infection control measures as needed.
To manage risks common to all Group companies, including safety and security risks, as well as the risks of disasters and accidents, we have clearly appointed responsible organizations to support each basic organization or related company. In addition, on April 1, 2022, we established a Safety and Disaster Prevention Committee, which coordinates and promotes cross-organizational measures related to safety and disaster prevention within the Group, to take all possible measures to ensure safety and disaster prevention after the transfer of the general gas pipeline business, etc. to our wholly owned subsidiary, Osaka Gas Network Co., Ltd.
We thus perform Group-wide risk management. To be prepared for emergencies, we have established the Rules for Disaster Control and the Business Continuity Plan. Under the plan, we conduct company-wide comprehensive disaster drills consisting of an earthquake drill and a BCP drill. In the current fiscal year, we will assume the occurrence of a disaster during the COVID-19 pandemic and confirm measures to ensure the smooth operation of the task force meetings after the transfer of the general gas pipeline business, etc.
We have also established a Cyber Security Committee, which regularly inspects and follows up on the Group's security, thereby further strengthening our measures against attacks from outside the Group's network.

The affiliated companies to be managed by the core companies, overseas regional headquarters, or the management support organizations are designated and their managerial tasks are monitored by receiving periodic reports and reports on important issues from the affiliated companies. In addition, day-to-day management of those affiliated companies is performed by using the G-RIMS and/or conducting audits.
The Company's Auditing Department, which conducts internal audits, implements planned internal audits of the Company's organizations and the affiliated companies and provides follow-up audits after a certain period of time.