Risk Management/BCP

General Policy

NIKKOL GROUP strives to provide a stable supply of safe and reliable products to our customers around the world. However, the impact of natural disasters and rapid changes in the social environment on our business have become increasingly significant in recent years.

Therefore, NIKKOL GROUP, led by Nikko Chemicals Co., Ltd., the Group’s head company, properly and promptly grasps the entire picture of risks from a global perspective, and the Group companies work together to promote NIKKOL GROUP’s business.

Risk Management

In a normal situation, our departments handling various risks perform tasks to mitigate risks. In addition, the Board of Directors of each company conducts annual risk assessments and considers countermeasures based on the results of these assessments. Further, the countermeasures of each company are shared among the Group companies to reduce risks for the entire Group, and we cooperate in the operation and management of the business continuity plan (BCP).

Crisis Management

In an emergency situation, the company facing such situation takes countermeasures on its own. Further, we consider any such situation as a crisis for NIKKOL GROUP as a whole and thus we immediately convene the Crisis Management Committee at the Group Headquarters and provide support to the Group Headquarter and other Group companies, share relevant information with each other, and take necessary measures.

Important Risks

AT NIKKOL GROUP, we consider an “Emergency Situation” to be a “situation in which a Group company faces a serious crisis due to an unexpected situation that differs from a normal situation” and examine important risks causing emergency situations from three aspects and conduct BCP risk assessments: “Disasters”, “Pandemics” and “Security Incidents”. Further, we assign Risk Assessment personnel for each of these important risks. Additionally, the Crisis Management Committee of the Group Headquarters, as well as the Crisis Management Committees of each of the Group companies, are convened as necessary to swiftly take necessary measures.

In addition to conventional countermeasures against earthquakes, we are strengthening our countermeasures against other natural disasters, fires, and secondary disasters as well.
We are monitoring the status of pandemics (spreading on a global basis) and epidemics (spreading within a specific community) and taking measures to minimize the impact on human beings and business activities.
Security Incidents
The risk of information leakage may involve not only the Group companies but also business partners. Considering this a major risk, the IT Planning and Promotion Division of the Group Headquarter takes the lead in controlling and mitigating the occurrence of such risk. In the event of a crisis, we, together with other internal departments and external organizations, organize a security-response team to plan and implement measures to minimize the impact.

BCP (Business Continuity Plan)

NIKKOL GROUP continuously examines its BCP countermeasures for further improvement, and the Group’s manufacturing and sales companies cooperate with each other in this regard.

Manufacturing – We have established a cooperative system within the Group that allows manufacturing companies in Japan and Singapore to mutually supplement each other’s production of certain products. In addition, we are working to strengthen our cooperative system with external parties to ensure stable production even in times of emergency by securing multiple outsourcing partners and mutual supply partners.

Sales – We have secured multiple warehouses in different regions to maintain a stable inventory.

Information Management – We makes efforts to formulate and maintain systems to enable the continuous provision of values to customers by utilizing cloud technologies.

Specific BCP measures of each of the Group companies are as follows.

Nikko Chemicals Co., Ltd.
As the Group Headquarter, Nikko Chemicals is responsible for the BCP of manufacturing, sales and information security for the entire Group companies. The Global Purchasing Division of the company seeks, evaluates, and secures second sources for raw materials to ensure stable procurement of products so as not to interfere with manufacturing at the Group’s manufacturing companies and to ensure stable supply of other products. The Logistics Management Division of the company formulates and implements measures for stable supply in terms of logistics. The IT Planning and Promotion Division of the company manages strategies for information security of each Group companies. We utilize threat intelligence services and are prepared for the handling of crisis events at an early stage.
Nippon Surfactant Industries Co., Ltd.
In addition to the continuation of strengthening safety measures (such as earthquake-reinforcement of manufacturing facilities), the company is working to ensure the stable manufacture and sale of products by collaborating with external manufacturing contractors. In addition, the company has a multiple number of warehouses to ensure a stable inventory. Further, the company is strengthening relationships with partners to enable mutual supply in case of disaster and other emergency situations.
Nikko Chemicals (Singapore) Pte. Ltd.(manufacturing and sales)
As the Asian base of NIKKOL GROUP, the company implements BCP in cooperation with the Group. It secures a multiple number of contract manufacturing partners and builds a system to enable us to manufacture products even in an emergency situation, and for some important products, the company has a manufacturing system that allows it to mutually complement with Japan Surfactant Industries.
Nikko Chemicals Shanghai Corporation
The company stores products procured from manufacturing companies (including Nikko Chemicals) at warehouses to ensure stable inventories.
Bergerac Japon Co., Ltd.
This company has decentralized its manufacturing processes and set aside backup manufacturing locations to minimize the impact on production in case of an emergency.
Nikoderm Research Inc.
The company, in cooperation with Nikko Chemicals, partners with domestic and overseas research institutes to enable evaluation studies even in emergency situations.
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