Risk Management

Risk Management

Policies and Basic Approach

Under the guidance of our Risk Management Policy and the Basic Risk Management Regulations, the Taisei Group has instituted a risk management system that is systematically implemented across the entire Company. Additionally, we have set up a robust management framework that addresses major ESG-related risks, including quality, compliance, information, safety, and environmental concerns.
To ensure the effectiveness of our company-wide risk management and maintain the integrity of our operations, we adhere to preventative risk measures outlined in internal policies and manuals. Should a risk manifest unexpectedly, we promptly take appropriate actions to minimize any losses, striving to ensure both the continuity of our business and the sustained trust of the community.

Sustainability Governance and Oversight

Promotion of Company-Wide Risk Management System

At Taisei Corporation, we work to continuously operate the risk management system to appropriately identify and manage risks associated with business operations. Under the risk management system, the President serves as Chief Executive Officer of Risk Management, and Chief of the Business Administration Division serves as the Chief Risk Management Officer (CRO). Each year, we take into account the risks that became apparent during the current fiscal year to review the risk management for the following fiscal year through the PDCA cycle and verify the effectiveness of the risk management system.
Based on the Basic Risk Management Rules, each division of the Head Office, in cooperation with the branches, reviews and identifies all risks associated with their business activities and selects the “Head Office-governed risks.” The “Head Office-governed risks” are then narrowed down to risks that can possibly have a material impact especially on corporate management. Such risks are selected as “key company-wide risks” and are subject to risk management across the entire company. The “key company-wide risks” are determined by the CRO after deliberation by the Risk Management Committee headed by the CRO. The President and the Board receive reports on the risks and confirm the operating status of the risk management system and maintain the effectiveness of the system.

Advancement of Company-Wide Risk Management

Business and Other Risks

Risks that may significantly impact corporate management are reported to the Management Committee and the Board. They collectively review and decide upon a comprehensive strategy to address such risks. These risks are documented in the Business and Other Risks section of the annual securities report.

Business and Other Risks

  • Market Risks
    ①Trend of the construction market
    ②Fluctuations in prices of materials
    ③Asset holding risk
    ④Retirement benefit obligations
    ⑤Fluctuations in interest rates
    ⑥Risks of related or incidental businesses
  • Risks of violation of legal controls over the civil engineering business and the building construction business
    ①Risk of violation of the Construction Business Act and related laws and regulations
    ②Risk of violation of the Antimonopoly Act
  • Risk of infringement of intellectual property rights
  • Risk of inappropriate financial reporting
  • Risk related to antisocial forces
  • Risk associated with quality due to construction failure
  • Risk of design flaw
  • Risk of process delays
  • Risk of accidents
  • Risk of information leakage and system trouble
  • Risk of large-scale disasters
  • Risk associated with the working environment
  • Risk of violation of environmental laws and regulations
  • Risk associated with environmental issues including climate change
  • Risk associated with human rights issues
  • Credit risk
  • Contract risk
  • Risk of the spread of infectious diseases
  • Country risk
  • Geopolitical risk

Climate Change-Related Risks

In terms of climate change-related risks, we specify and assess risks based on various scenarios created and promote initiatives in response to the TCFD Recommendations.

Provisions for ESG-Related Fines and Settlements

Fines and settlements, etc. relating to environmental, social and governance (ESG) issues that are caused by events prior to the current period and are highly likely to occur in the future are estimated and allocated as provisions. Applicable provisions are not allocated for the three most recent business years.

Activities / Efforts

Initiatives for Business Continuity Planning (BCP)

The Taisei Group defines large-scale disasters as large earthquakes, storms or torrential rains, or other severe natural phenomena, as well as infectious diseases that significantly impact our business continuity. In addition to ensuring the safety of our employees and their families' lives and health, we have established the Business Continuity Plan in accordance with the Policy on Business Continuity in Times of Disaster and other internal regulations. This is to fulfill our mission as a general contractor that is at the foundation of social and economic activities.
The Business Continuity Plan is based on the scenario of large earthquakes occurring during the most challenging season or time for business continuity. It outlines procedures for confirming the safety of employees, rescuing lives, preventing secondary disasters at construction sites, implementing emergency measures for infrastructure support, and restoring former construction projects, as well as securing bases, personnel, and information infrastructure. Procedures necessary for coordinating with government agencies, local communities, infrastructure companies, and suppliers are also defined.
In addition, to verify its effectiveness, we conduct annual large-scale disaster preparedness training for the employees of Taisei group, and based on their results, we regularly review and improve the Business Continuity Plan.
Furthermore, since 2015, we have been partnering with organizations such as the Japan Federation of Construction Contractors to conduct annual joint training exercises, aiming to establish a system in collaboration with suppliers that can promptly respond to support requests from governments and other organizations.
In recognition of these efforts to improve the Business Continuity Plan, we have obtained certification as a contributor to national resilience (Resilience Certification) from the Cabinet Secretariat's National Resilience Promotion Office, and as a certified company for basic business continuity by the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism.
Moreover, in regard to a business continuity plan for infections, considering the COVID-19 outbreak that emerged in 2019, we have established a system to take measures such as to restrict social activities as the situation demands by means of unifying information on infection statuses across both domestic and international business locations during the pandemic, and have revised the plan as the "Business Continuity Plan for Infectious Disease Outbreaks."
Going forward, we will prepare the system to promptly implement infection prevention measures through continuation of stockpiling essential supplies for infection prevention and educating our executives, employees and specialized contractors about actions to take in the event of infections occurring.

Information Security Measure

In the construction industry, it is imperative to share information with numerous stakeholders, including clients and collaborative entities like specialized contractors, during the construction process. Recognizing this, the Taisei Group has articulated the “Management of Information and Intellectual Property Rights” in its Action Guidelines for Taisei Personnel and the Taisei Group as a Whole. We have taken various steps towards information security and have formulated both the Policy on the Protection of Personal Information and the Code of Conduct for the Use of Social Media.
At Taisei Corporation, we have consolidated a set of core rules for managing electronic information into a booklet. This serves as a foundation for the education and guidance we provide to all our executives, employees, and business partners. In addition, we are actively enhancing the information security measures at our overseas branches and project sites, and we are particularly focused on bolstering safeguards against potential information leaks that could arise from telecommuting (working from home).
Moreover, to proactively prevent and lessen intellectual property risks—like rights infringements or technology outflows that could profoundly impact our business operations—we rigorously enforce risk management across all our business activities.
In light of the escalating threat of cyber-attacks, we remain vigilant. Central to this effort is our Taisei-Security Incident Response Team (SIRT), established in 2013. Collaborating with external agencies through the Nippon CSIRT Association, we continuously gather the most recent intelligence on cyber threats. Armed with this information, we strategize and implement advanced defensive measures, aiming to preemptively ward off potential attacks.


Governance Data