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Risk management

Implementing a risk management framework

Through our Governance Committee, we monitor different SATO subsidiaries and guide them to operate properly with risk awareness and a thorough understanding of business management basics. We also have other committees to manage specific risks categorized as follows.

Business risks

There are risks that the company would take in driving business when making investments and loans, acquiring and disposing of stock and fixed assets, entering into business partnerships or important agreements, and selling/buying businesses.

Our Business Risk Committee, which reports directly to the board of directors, is responsible for analyzing and monitoring business plans proposed by executives for such risks upon the board’s request. The committee’s input and reports facilitate more thorough deliberations at board meetings to help the management make important business decisions with the objectives of minimizing risks and maximizing returns.

General risks

There are also risks associated with natural/man-made disasters, work accidents, fraudulent/illegal employee conduct, IT/cybersecurity threats, legal compliance, and other unforeseen circumstances that would significantly harm our business value.

Our Risk Management Committee is responsible for determining preventive actions to minimize any resulting damage and drawing up crisis countermeasures should such risks occur.

Strengthening information security

We regard information security as an important business imperative, and apply rules and procedures for managing and protecting information assets based on our information security policy to drive security measures across the SATO Group. Under our in-house Risk Management Committee, we have established an Information Assets Management Committee that ensures security measures and account/access control methods are in place to keep information systems safe starting from their development to implementation and maintenance, on top of governing the management of information assets. Our Auditor Office also helps to monitor how our information assets are being used and managed.

Protecting intellectual property

Since our founding, SATO has always sought to offer products and services that solve operational problems for our customers, in the spirit of Ceaseless Creativity. Through the development of new products and services, we build up a portfolio of intellectual assets that are important to the company’s present and future.

To protect these resources, we have set basic standards to be followed globally while undertaking structured efforts to educate employees and increase their awareness about intellectual property. By giving recognition to the inventive thinking/work of our employees, we strive to drive the creation, protection, and utilization of intellectual property that generate customer value not only through products but also through solutions we provide, in line with our positioning as a global auto-ID solutions company. We believe this will help us increase our corporate value and contribute toward a better and more sustainable world. Lastly, we also place emphasis on respecting the valid intellectual property rights of others, making sure we comply with governing laws and regulations in different countries to minimize any potential intellectual property risks.


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