Risk Management

To ensure the comprehensive management of the entire Group’s risks, the members of the CSR Committee (chaired by the director and an executive officer) are drawn from the Group. The CSR Committee monitors the Group’s risk management efforts and manages the plan-do-check-act (PDCA) cycle. This ensures that policies and the risk management process are developed, implemented, monitored, and improved in the interests of enabling enhancement to be continuous.

Dentsu sets up rules for the management of risk, in order to maintain and improve a structure that prevents the occurrence of risks and precludes the spread of damage or loss, while minimizing the impact of risk progression should risks materialize. The Company prioritizes key risks and formulates concrete measures that can be employed should a response be required. A department is assigned to be responsible for each key risk. These departments develop and implement the requisite measures to reduce risks; compile mid-term progress reports, year-end selfassessments, and guidelines for the succeeding year; and report to the CSR Committee. Key risks and potential risks, thought likely to eventuate over the medium to long term, are reported by the CSR Committee to the Executive Management Committee. After confirming the status of any risk—whether it can be avoided, reduced, transferred, or retained—the CSR Committee develops and reviews response measures.

To prioritize key risks, the Dentsu Group conducts quantitative and qualitative analyses using a risk map. This data visualization tool takes into consideration the frequency and impact of each risk, and uses correlation analysis to identify key risks.