Risk Management System

Aiming to achieve sustainable growth and increase corporate value over the medium to long term, Asahi Group has renewed its risk management structure. It is building a system that encourages appropriate risk-taking while controlling the total amount of risk for the entire Group.

1.The Asahi Group Enterprise Risk Management

The Asahi Group has introduced enterprise risk management (ERM) for the entire Group. The Asahi Group effectively and efficiently controls its overall risk that could impede execution of strategies and achievement of objectives defined in the Medium to Long-Term Management Policy based on the Asahi Group Philosophy through activities such as identifying and evaluating critical risks across all areas that include strategy, operations, finance, and compliance, building up responding plans, and executing and monitoring the plans.

The respective companies of the Asahi Group implement ERM on the basis of each business unit, and report the details of the initiatives to the Risk Management Committee of the Company. The Committee monitors the initiatives, and its members identify and evaluate critical risk across the Group, build responding plans, and execute and monitor the plans. All such initiatives are reported to the board of Directors, which ascertains the effectiveness of ERM by monitoring the initiatives.

  • Asahi Group Enterprise Risk Management

    • Definition: The effect of uncertainty on the ability of the Asahi Group to achieve the strategic objectives defined in the Medium to Long-Term Management Policy based on “The Asahi Group Philosophy”
  • Asahi Group ERM Structure

2.The Asahi Group’s Risk Appetite

The Asahi Group has developed “The Asahi Group Risk Appetite” to specify risks to be accepted or to be minimized for achieving objectives of the “Medium to Long-Term Management Policy” while promoting ERM.

“The Asahi Group Risk Appetite” is a policy related to risk management of the Asahi Group. It serves as a guideline for engaging in ERM and a guideline for opting whether or not to take risks when decisions are made. It consists of the “Risk Appetite Statement” which shows the Group’s basic stance toward risk, and the “Specific Risk Appetite” which shows each stance (appetite) for major categories of risk that greatly affect business execution, premised on the assumption of practical application. The Company has developed the Appetite through consideration on its Group strategy, risk culture, risk profile, and stakeholders’ expectations. The Appetite is approved by the Board of Directors and is applied to the entire Group. The Risk Management Committee monitors its implementation and reports its progress to the Board of Directors. Through the initiatives, the Company promotes appropriate risk takings across the overall Asahi Group.

Asahi Group Risk Appetite Framework

The Asahi Group Risk Appetite Statement

The Asahi Group Medium to Long-Term Management Policy seeks to contribute to sustainable society and respond to changing conceptions of wellbeing through delivering great taste and fun based on the Asahi Group Philosophy in order to sustainably increase its corporate value.

In order to achieve the strategic objectives defined in the Policy:

  • the Asahi Group achieves organic growth by building high-value-added brands, and with regard to inorganic growth achieved by M&A activities and innovations, is willing to take commercial risks in a controlled manner that balance the need for a robust financial position whilst creating value growth for shareholders;
  • the Asahi Group delivers excellent quality products and ensures a safe work environment for everyone at the Asahi Group, both of which are critical priorities at the heart of Asahi’s success;
  • the Asahi Group pursues initiatives to protect the environment and is willing to innovate to create greater environmental value in society; and
  • the Asahi Group accepts as little risk of non-compliance with the Asahi Group Code of Conduct and the Asahi Group Human Rights Principles as possible.