The Company’s Risk Management Committee plays a role in implementing risk management activities across the Suntory Beverage & Food Group. It collaborates with the Sustainability Committee, Quality Assurance Committee, and risk management committees at Group companies in and outside Japan. Together, they periodically identify risks within the Group, examine the likelihood of those risks materializing and their potential impacts on business performance, formulate response measures, and confirm progress on addressing the risks. The Risk Management Committee also reports these activities to the Board of Directors. The Risk Management Committee’s reporting process ensures that the Board of Directors regularly discusses and verifies the effectiveness of the risk management process.

Enterprise Risk Management (ERM)

The Company implements ERM with reference to COSO-ERM, an integrated framework for ERM published by the Committee of Sponsoring Organisations of the Treadway Commission in the US. Every year, the Risk Management Committee identifies and assesses key risks for the entire Group, identifies risks that should be prioritised, and promotes risk mitigation activities across the Group. The identified risks are evaluated on the two axes of risk exposure (likelihood of occurrence x impact) and countermeasure level (degree of preparedness for countermeasures) to identify key risks that should be prioritised for the Group as a whole. Responsible persons and monitoring bodies are appointed for the identified priority risks, and measures are implemented to address them. The status of the response is reported and discussed at the Risk Management Committee and, based on the results of the response, the PDCA cycle of identification, evaluation, countermeasures and monitoring is carried out by selecting the key risks for the following year.

Business Continuity Plan (BCP) Formulation and Implementation

In recent years there has been a string of unanticipated disasters, including both natural disasters such as major earthquakes, flooding caused by typhoons and torrential rainfall, landslides, heavy snow and volcano eruptions, and the spread of infectious diseases such as COVID-19 since early 2020, new influenza and noroviruses, which continually threaten both society and the economy. The Suntory Beverage & Food Group has formulated a business continuity plan (BCP) that will enable the Group to continue doing business to the greatest extent possible without interruption in the event of a disaster, so it can securely provide high quality products and services to customers, thus fulfilling its responsibilities to provide supplies.
The plan we have formulated goes beyond manufacturing at the Group plants to include raw ingredient procurement and distribution as well as sales activities. We have taken steps to be able to decentralize our head office functions and infrastructure in an emergency and continue to strengthen our response structure to cope with contingencies.

Large-scale Natural Disaster Measures

Establishment of Safety Confirmation System and Emergency Drills

In preparation for natural disasters such as major earthquakes in Japan, we have in place a system that uses mobile phones, PCs, landlines, etc., to confirm the whereabouts and safety of employees.
We hold safety confirmation drills twice a year and work to raise awareness to ensure that the system operates smoothly. We also conduct regular disaster prevention drills based on the scenario of a major earthquake and drills focusing on how to get home from work on foot.

Disaster Response Systems

In the event of a large-scale disaster, we will provide a quick initial response by setting up a task force, mainly consist of the General Affairs Department of Suntory Holdings Limited and the Corporate Management Division of Suntory Beverage & Food Limited, to oversee the entire Suntory Group, and placing emergency response teams for each department under its control. The initial response of the task force will begin with confirming the safety of employees and their families and collecting and organizing information on damage from a disaster. The task force will also oversee the “restoration of office functions” “restoration of information systems,” and the “arrangement of relief supplies,” which will be carried out according to the action policies of each department, while also "restoring production operations" and "supporting customers and local communities.” These systems and procedures are posted on the intranet so that employees can review them at any time. We have regularly reviewed our disaster response manuals, enhanced communication means and disaster supplies, and strengthened our disaster preparedness system, including that of our group companies. In addition, given the increasing number of people working from home amid the coronavirus pandemic, the task force has also a remote response system in place to ensure a prompt and appropriate initial response in the event of an emergency, in line with global circumstances.

Measures Against Infectious Diseases

Since the influenza pandemic in 2009, we have been taking measures to avoid the disruption of business operations by creating a manual on response process during a pandemic based on our Influenza Prevention Manual, disseminating information among employees, clarifying reporting system during pandemic, and strengthening measures to prevent the spread of infection. In addition, we created a course of action related to highly pathogenic diseases to handle all diseases (revised 2015). Furthermore, we have established a BCP that enables operations to continue even during a pandemic, highly-virulent influenza or other diseases.

New Coronavirus Countermeasures

We have established a New Coronavirus Task Force, which places the highest priority on employee safety, consolidates information on a disaster’s impact on our supply chain and business performance, and quickly makes decisions and implements countermeasures. The system and environment that allows employees to work from home was in place before the coronavirus outbreak, enabling employees to work from home smoothly even during the pandemic. To ensure safety and security of employees working on site, we have implemented measures such as the installation of thermometers, acrylic boards, and disinfectant in various locations. In 2021 and 2022, a total of 3 vaccinations will be conducted for employees, cooperating companies, and their families. Since the 7th wave in 2022, we have been gradually reviewing infection control measures, lifting restrictions on business trips and going to work, as well as restrictions on the number of people who can have dinner together. In order to change to Category 5 in the future, we plan to review infection control measures such as wearing masks and change the response to infection in accordance with government policy.

Safety Management for Overseas Business Travel

As globalization continues to progress, safety management for overseas business travelers has become a major challenge. In 2013, Suntory Beverage & Food launched a system that allows the Company to keep track centrally of all employees traveling from Japan to overseas countries on business. Furthermore, in 2017, we introduced a group-wide infrastructure system that enables centralized management of overseas business trip arrangements, applications, and post-business trip reimbursement, to confirm the safety of employees on overseas business trips in a short period of time.
For Group companies in regions with high incidence of malaria, tuberculosis, HIV/AIDS, and other infectious diseases, we distribute handbooks and other materials to raise awareness of these diseases and provide opportunities for health consultations with industrial physicians to prevent infection among employees stationed in or visiting on business such places. In order to prevent the spread of the new coronavirus infection and to prevent infection, overseas business trips that had been postponed have been resumed after confirming the infection status of the business trip destination and complying with the entry rules of each country and the rules when returning home.

Business Risks

The following provides details on the risks, among the major ones recognized by top management as having the potential to significantly impact the financial position, operating results and cash flow situation of the Group, that are classified as particularly material risks or other material risks by the Risk Management Committee.

Business Risks