Risk management

Our approach to risk management

The Recruit Group has the Recruit Group Risk Escalation Rules in place to ensure prompt reporting back to Recruit Holdings and information sharing regarding critical issues within the entire Group.
Recruit Holdings then takes necessary actions in accordance with the overarching Recruit Group Risk Management Policy.

Systems and mechanisms

To promptly execute the appropriate counter-measures to any of the multiple risks faced by our businesses, the Recruit Group has established a risk management structure within each SBU, in addition to an overarching structure within Recruit Holdings.

Specifically, each of our three SBUs has Risk Management Committees, focused on the specific risks that their individual SBU faces. These committees are responsible for identifying important risks related to their own businesses and setting out appropriate mitigation measures, before reporting back to the Risk Management Committee of Recruit Holdings.

Recruit Holdings also has its Risk Management Committee in place, which meets twice a year. In addition to reviewing the reports received from the three SBUs, the committee identifies the important risks that the Group as a whole faces, determines the priority of the risks, and establishes appropriate responses. These outcomes are then reported to the Board of Directors.

Risk management committee

Recruit Holding's Risk Management Committee is chaired by the board director in charge of risk management and consists of executive officers responsible for corporate functions and other key personnel. They discuss risks surrounding the Recruit Group, draft Top Risks and mitigation measures, and monitor ongoing risk measures. The results of their deliberations and decisions made are reported to the Board of Directors.

Response to occurring risks

Escalation rules

With the aim of quickly reporting serious cases and sharing information, we have established the Recruit Group Escalation Rules. When events that will seriously affect the execution of our business occur, are discovered, or are recognized as potentially occurring, they will trigger report and response mechanisms. These mechanisms are developed by Recruit Holdings and each subsidiary and shared with all company employees.

Group crisis management task force

If a serious incident occurs that could affect the entire Group, Recruit Holdings sets up a crisis management task force to address the situation.