Risk Management

Pigeon has formulated the Rules for Risk Management, which systematically stipulate the Pigeon Group's risk management responses, and are committed to effective risk management.

Risk Management System

Governed by the Rules for Risk Management, which systematically stipulate the Group’s risk management responses the Global Head Office (GHO) Risk Management Committee is chaired by the director for GHO, under the supervision of the president and CEO. Directly below the GHO Risk Management Committee are the Risk Management Committees of each business segment, which are chaired by the head of operations in each segment (Japan Business, China Business, Singapore Business, and Lansinoh Business). This framework enables information about risk to be collected across the entire Group, provides necessary controls, and empowers each segment to respond rapidly to risk issues. The GHO Risk Management Committee reports the details and the results of responses made to the Board of Directors, as necessary.

Organizational Chart of Risk Management Committee

Risk Management Activities

The GHO Risk Management Committee systematically collects, analyzes, and evaluates the risk information it gathers from throughout the Group, centered on the risk information it collects from each business segment. On its own or through the respective business segments, the GHO Risk Management Committee then examines and implements response measures. In particular key risks are being addressed primarily by the departments in charge of risk as nominated by the GHO Risk Management Committee. These departments collate information and examine and implement measures across the Group. In addition, in order to manage risk throughout the Pigeon Group, we review risk annually through risk assessments, while striving to reduce risk and prevent the occurrence of major risks.

In the event of a crisis to the Group, such as a large-scale disaster, the Risk Management Committee promptly convenes in accordance with the Risk Management Regulations or the Business Continuity Plan (BCP), and respond to minimize losses and restore operations. In the event of a serious risk or incident, the GHO Risk Management Committee reports to the Board of Directors on the details and results of the response, as appropriate.

Committee Members of The GHO Risk Management Committee

Chair：	Tadashi Itakura	Director, Senior Managing Executive Officer Head of Global Head Office
Committee Members　：	Kevin Vyse-Peacock	Director, Executive Officer Lansinoh Business Division Manager/ CEO of Lansinoh Laboratories, Inc.
	Yusuke Nakata	Senior Managing Officer Singapore Business Division Manager/ Representative Director of PIGEON SINGAPORE PTE. LTD.
	Zenzou Yamaguchi	Senior Managing Officer Head of Japan Operations Baby Care Business Division Manager
	Joe Zhou	CHINA BUSINESS DIV. President & Managing Officer/ PIGEON SHANGHAI CO.,LTD President
	Nobuo Takubo	Managing Officer, Business Strategy Division Manager

Risk Owners：	Accounting ＆ Finance Division
	Supply Chain Management Division
	Legal Department
	Systems Consulting Department
	Customer Service Center
	Business Strategy Division

Key Risks monitored by the GHO Risk Management Committee

- Compliance Risk

- Financial Risk

- Information Security Risk

- Supply Chain Management (SCM) Risk

- Customer Complaint Risk

-Human Rights Risk

Other risks of Business Risks recognized by the Pigeon Group

Risk Management Methods

We have established a PDCA cycle and conduct risk management activities throughout the year.

Activities of the GHO Risk Management Committee

Number of meetings	Twice a year
Reports to the Board of Directors	Once a year
Activities	-Sharing of information on Group risks and incidents -Formulation of measures mitigating key risks and management of progress -Reporting on the results of risk assessments conducted and risk mitigation measures  across the entire Group

The GHO Risk Management Committee meetings

6th Feb 26, 2024