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 implements follow-up and other measures if necessary.

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. 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 (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 23, 2021, 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.

Revisions have been made to the Daigas Group Code of Business Conduct in view of recent changes in the external environment, such as climate change and anti-corruption measures, and the expansion of business areas. 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.

In addition, to promote further understanding and effective use of the consulting and reporting system for employees as an internal reporting system, posters are displayed to publicize the reporting system, and detailed explanations on the system and the concept of compliance is provided via the intranet or other means.

Initiatives are being undertaken under the organizational risk management structure, responsibility, and authority described above.

In FY2021, we 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. We also conduct Company-wide general disaster readiness drills comprising disaster response drills and BCP drills. This time we carried out the drills assuming an outbreak of a disaster during a pandemic, and provided remote emergency collaboration education and drills designed to foster collaboration between gas piping companies and gas retailers.

The Cybersecurity Committee enhanced countermeasures against attacks from outside the Daigas Group’s network.

The affiliated companies to be managed by the core companies or the management support organizations are designated and their managerial tasks are monitored by receiving 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.