After thorough discussions on the Cosmo Energy Group’s approach to risks and opportunities, the Board of Directors has decided to adopt this Risk Management Policy. Under the Board’s oversight, we will fulfill our accountability for implementing this policy to further our risk management initiatives.
Risk Management Policy
The Cosmo Energy Group Management Vision is, “Striving for an infinite tomorrow, developing sustainably in harmony with humanity, society, and our planet.” True to our Vision, we recognize that maintaining the ability to accurately manage and respond to the various risks surrounding our business is one of the top priorities for the Group to address. That is why we have established the Cosmo Energy Group Code of Conduct, which expresses our commitment to risk management as a foundation for business continuity. This Risk Management Policy is based on our Management Vision and Code of Conduct and outlines our basic approach to risk management.
1. Basic Approach to Risk Management
The Group defines “risk” as uncertainties that could impact the achievement of our short-term and medium- to long-term business strategies and objectives. As a corporate group that provides essential products and services for maintaining social functions, we strive to achieve sustainable development by addressing risks while considering both threats and opportunities that could significantly affect our business activities. This approach helps us ensure a stable supply of products and services.
2. Risk Management Initiatives
To address changes in the business environment and various risks surrounding the Group, we establish and utilize the necessary risk management systems and methodologies based on the COSO ERM Framework, the Enterprise Risk Management framework developed by the Committee of Sponsoring Organizations of the Treadway Commission in the United States.
3. Communication and Training
We inform all directors, employees, business partners, and other stakeholders about this policy and provide appropriate training to our directors and employees as necessary to ensure risk management is integrated into business activities across all Group companies.
4. Information Disclosure
We disclose the progress and results of risk management initiatives based on this policy through our website, reports, and other channels.
Established: March 23, 2023