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Risk management

Risk management

To assess and manage credit risks, ALCONIX and its Group companies have a system in place whereby items are submitted for approval using an internal authorization form in accordance with the Authority Rule and Schedule of Authority. Approval is granted after items are deliberated by the Corporate Sector. The Risk Management Committee, chaired by the president and comprising directors and the Corporate Sector general manager, meets monthly to deliberate on transactions that exceed specified thresholds for transaction value and risk. Full-time Audit & Supervisory Board members attend Risk Management Committee meetings as observers.
At the same time, internal audits enable the Audit Department to ascertain and confirm the status of compliance with laws and internal regulations in the execution of duties by employees, with the results of the audits reported to the president, directors, and Audit & Supervisory Board members. Issues identified and items requiring improvement are shared throughout ALCONIX and its Group companies as priority issues.

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 CSO, 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

ALCONIX formulates a variety of Company-specific regulations for the entire Group. To recognize risks involved in the Group company decision-making process, Group companies submit items for approval using an internal authorization form in accordance with the Authority Rule and Schedule of Authority. After items are deliberated by the Corporate Sector, the Group company adopts the recommended practices.
ALCONIX dispatches full-time directors, executive officers, and other employees to each Group company to serve as part-time directors who directly participate in Group company management, as well as provide operational guidance and management. Through periodic subsidiary audits, the Audit Department ascertains and confirms the status of compliance with laws and internal regulations in daily operations. It also submits improvement plans to Group companies with issues that need resolving.