Through our Risk Management and Compliance Committee, and based on our Risk Management Policy, the Nissha Group conducts centralized management over risks that hinder business operations. Once a year, based on the business models for each company and the business organizations, we prioritize and appropriately control risks that could hinder the continuity of business activities for all companies, in cooperation with the departments and subcommittees that have primary responsibility for risk.

The Group has sets “Act with Integrity” (We act with integrity and maintain the trust placed in us) as one of the Shared Values that are principle of employee behavior. And we declared that each officer and employee should act in good faith and continue to be a trusted company. We established the Corporate Ethics and Compliance Guidelines, which sets out the basic ideas concerning corporate ethics and compliance that each officer and employee is expected to follow.

Nissha has established a Risk Management and Compliance Committee chaired by Director of the Board, Senior Executive Vice President (in charge of legal affairs) and composed of all in-house Directors of the Board. The Risk Management and Compliance Committee holds a general meeting once a year and progress confirmation meetings every quarter, and reports to the Board of Directors each year on the status of activities. The Board of Directors oversees the activities of the Risk Management and Compliance Committee, discusses reports from the Committee, and gives improvement instructions as necessary.

The Risk Management and Compliance Committee carries out risk assessments. The lead departments or subcommittees that manage the key risks selected through this risk assessment set Key Performance Indicators and action items, and work to mitigate these risks through their activities.

We aim to conduct risk reduction that is even more in line with business activities. In addition to the Headquarters Corporate Division risk assessment, risk priority levels will be considered in business units and affiliated companies as well. General Managers will select key risks, taking into account the process of confirming appropriateness from a business management perspective.

In the fiscal year ended December 2024, as a result of the risk assessment, the Nissha Group in Japan has chosen as key risks fair business practices, labor and human rights, product and service quality and safety, medical product and service quality and safety, supply chain management, information systems, and business continuity. The Nissha Group overseas has selected labor and human rights, financial affairs information systems and business continuity.

The Risk Management and Compliance Committee promotes corporate ethics and compliance activities throughout the entire Nissha Group. All Nissha Group bases in Japan and overseas appoint managers and group leaders in charge of promoting corporate ethics and compliance.

The Group designates every October and November as Corporate Ethics and Compliance Months, and provides groupwide training at all bases in Japan and overseas. This simultaneous training is provided not just for full-time, contract, and temporary employees, but for managers of subcontractors and even part-timers.

At the Nissha Group, in addition to company-wide simultaneous training, we also hold compliance training designed for officers.

The Nissha Group in Japan has in place an Internal Reporting Code and a hotline based on the Whistleblower Protection Act for the purposes of quickly identifying the facts about illegal, unfair, or unethical conduct by an organization or individual, minimizing the risk of a crisis, promoting ethical and legal compliance, and ultimately enhancing our corporate value.

For overseas locations as well, in addition to already operating report acceptance services for some group companies in China and the Southeast Asian region, we commenced the operation of report acceptance services in some North American and European bases starting in the fiscal year ended December 2023.