Risk Management

Our Approach to Risk Management and Methods of Implementation

What Is Risk Management?

Risk management for a company means the process of identifying apparent and potential risks in the business activities of the company, managing them systematically, and avoiding or reducing losses, etc.
This is a business management approach for avoiding a crisis and minimizing losses in the event of a crisis by accurately identifying the risks that act as barriers to corporate management and their effects and taking measures in advance.

リスクマトリクス

Global Risk Management

As customers expand their overseas presence and develop global business operations, their assets, supply chains, and business areas inevitably spread across the world, where risks are always involved.
As the headquarters of a corporate group, we call the process of identifying and managing risks around the world in normal times and taking countermeasures global risk management.
Global risk management is not an easy task, but it is necessary for smooth and sound business development. It is very important for the Japanese headquarters to establish a system for managing the risks of the entire Group, including overseas risks.

Information Gathering

Situations around the World
Natural Disaster Information, Insurance Regulations, etc.

Accident Prevention and Reduction

LOSS PREVENTION／
LOSS REDUCTION

Self-analysis

RISK ANALYSIS
AND CONTROL

General Risk Management Procedures

The first step is to identify and analyze risk, calculate and assess the risk, and then consider countermeasures. After taking countermeasures, periodic reviews will be conducted to identify and respond to a new risk.

  1. STEP 1

    Identifying and recognizing risk

  2. STEP 2

    Analyzing the risk

  3. STEP 3

    Calculating and assessing the risk

  4. STEP 4

    Considering countermeasures for the risk

  5. STEP 5

    Managing and Understanding Risk Countermeasures

periodic reviews

Risk Management Strategies

We consider risk mitigation measures by taking into account factors such as the impact on business and the likelihood of occurrence.
For risks with low likelihood but high potential impact, 'risk transfer' is an effective strategy.

Large Impact on Business
（Scale of Damage） Small

Risk Transfer

High Damage and Low Frequency

Risk Avoidance

High Damage and High Frequency

Risk Holding

Low Damage and Low Frequency

Risk Reduction and Prevention

Low Damage and High Frequency
Low Risk Frequency (Possibility) High
Category Measures Description
Risk Control Avoidance Measures to block the anticipated risk by suspending risky activities. This involves an abandonment of return.
Loss prevention Reduce the frequency of risks by taking measures and precautions to prevent losses from occurring.
Loss reduction Measures to prevent and mitigate the expansion of losses in the event of an accident and to minimize the scale of losses.
Separation and diffusion Measures to separate and disperse sources of risk rather than concentrating them in one place.
Risk Financing Transfer A method of receiving compensation for losses from a third party through insurance or contracts, etc., when losses occur.
Holding A method of bearing losses without taking any countermeasures while being aware of potential risks when losses occur.

MST for Risk Management

MST, as a risk management innovator, comprehensively analyzes the diversifying and increasingly complex risks that customers face. In addition, we offer insurance products based on the Group’s comprehensive capabilities, provide solutions to customers’ management issues related to risk management.