We identify company-wide material risks across organizational boundaries and implement a wide range of initiatives to hedge and control risks. The Chief Operating Officer of each business unit and regional business unit is responsible for managing risks in their business domain within the authorization delegated to them as part of the performance of their duties. Meanwhile, Corporate Staff Divisions provide support to business units and regional business units regarding the aspects of risk management that they are in charge of while also monitoring the company-wide position and reporting to management. In addition, the major committees pertaining to the execution of business and implementation of internal control develop risk management structures on a company-wide basis and handle significant risks as advisory bodies and subordinate organizations to the Corporate Management Committee.
Global Tax Management Policy
One of the guiding principles of the Mitsui & Co. group is to comply with all applicable laws and regulations in operating countries and to act with integrity and the highest ethical standards. In the same way, we will strive to maintain and improve tax compliance in accordance with national and regional tax laws and regulations as well as standards published by international organizations, and will fulfill our corporate social responsibility by paying appropriate taxes.
We are committed to complying with our tax obligations and simultaneously managing our global tax costs in all operating countries. We publish the "Global Tax Management Basic Policy" as a basic policy for taxation of the entire group after reporting it to the Management Committee and the Board of Directors.
Risks arising from Mitsui's business activities are monitored and managed by chief operating officers of business units and regional business units under the oversight of the Board, within the authorization delegated to them from Mitsui's management. Measures taken by each business unit to manage quantitative risks include setting position limits and loss-cut limits and conducting monitoring through divisions with relevant expertise. For the management of qualitative risks, the business units are obligated to observe relevant internal regulations. When a business unit or regional business unit takes on risks that are greater than the scope of authority granted to them, it is necessary to obtain approval of the Corporate Management Committee or a relevant representative director or senior managing officer, depending on the importance of the situation, in accordance with the standards of the internal approval system.
Furthermore, organizations such as the Portfolio Management Committee, the Sustainability Committee, and the Crisis Management Headquarters establish and develop risk management structures on a companywide basis and handle significant risks. These committees and their chairpersons are separate from the Audit & Supervisory Board, and directors who serve as committee chairpersons report to the President and Chief Executive Officer as required. Members of the corporate staff units are responsible for surveillance of Mitsui's position regarding the risks they are in charge of overseeing, as well as the control of risks within the prescribed range of their authority and the provision of support to relevant directors and managing officers.
ESG Risk Management
Our business activities spreading widely across the globe face a range of risks. Both our business opportunities and business risks are growing and becoming more diverse with the globalization of economies, the development of networked societies, and the high level of awareness of corporate social responsibility. In addition, the speed of change in the environment surrounding management and business is increasing. As uncertainty rises, we regularly review our risk management policies to increase our sensitivity to risk and our ability to respond quickly.
Information Risk Management
The important principles for our global group information strategy are formulated in line with the corporate management policy through the discussions at the Information Strategy Committee which was established pursuant to the "Rules of Information Strategy Committee," and is chaired by the Chief Digital Information Officer(CDIO). Under the system centered around the Information Strategy Committee, we are enhancing the system of internal control including management of various possible risks such as information leakage and cyber-attacks through maintenance of the following rules, necessary in light of development and operation of information systems and information security.
Business Continuity Management (BCM/BCP)
Mitsui & Co. regards business continuity in times of disaster as a vital management priority. We have formulated a Business Continuity Management (BCM) framework to minimize business risks, such as the loss of customers and damage to our corporate reputation, resulting from the suspension of important business processes in the event that our ability to maintain our business operations is seriously impeded by earthquakes, floods, terrorism, epidemics, power shortages, or other contingencies, or when such a situation is expected to continue for a significant period of time.