Risk management
ALCONIX recognizes the occurrence of loss risks within the internal control system prescribed under the Companies Act as a material risk. To address this, items are submitted for approval using an internal authorization form in accordance with the Credit Limit Management Regulations and the Authority Rule and Schedule of Authority. Items exceeding prescribed thresholds are deliberated by the Corporate Sector, after which approval is granted. This mechanism is applied across the entire ALCONIX Group. Transactions for which the transaction value or associated risk exceeds specified thresholds are deliberated by the Risk Management Committee, which meets monthly, as part of efforts to prevent material losses in business operations.
In addition, based on an annual audit plan approved by directors, the Audit Department conducts internal audits of compliance with laws, regulations, and internal regulations, as well as the appropriateness and efficiency of operations, and verifies the effectiveness of internal controls.
Basic Policy
The ALCONIX Group handles non-ferrous metals in a wide range of fields utilizing a business model that integrates trading and manufacturing. This presents a variety of risks. The Risk Management Committee, chaired by the Director, Managing Executive Officer, and CFO, meets once a month to identify risks and issues for the entire Group and discusses countermeasures. Under this committee are subcommittees that discuss topics related to a specific risk category assigned to them. Going forward, the committee will continue to build up collaborative ties with related departments in order to serve as a central point of understanding and analysis of Groupwide risks, with the aim of addressing these risks swiftly.
Efforts Aimed at Strengthening Risk Management
The Group has developed a "risk map" that analyzes the likelihood and impact of various risks surrounding the Group, and is committed to risk management by identifying key risks in response to environmental changes and implementing countermeasures to avoid or minimize their impact. The department in charge takes the initiative in responding to each risk and works to minimize risks. At the same time, we are strengthening risk management through cross-organizational committee activities, including the Risk Management Committee and the Internal Control Committee, under which the Compliance Meeting and the Information Management and Security Meeting are positioned.