Through our Risk Management and Compliance Committee, and based on our Risk Management Policy, the Nissha Group conducts centralized management over risks that hinder business operations. Once a year, based on the business models for each company and the business organizations, we prioritize and appropriately control risks that could hinder the continuity of business activities for all companies.

The Group has sets “Act with Integrity” (We act with integrity and maintain the trust placed in us) as one of the Shared Values that are principle of employee behavior. And we declared that each officer and employee should act in good faith and continue to be a trusted company. We established the Corporate Ethics and Compliance Guidelines, which sets out the basic ideas concerning corporate ethics and compliance that each officer and employee is expected to follow.

Nissha has established a Risk Management and Compliance Committee chaired by Director of the Board, Senior Executive Vice President (in charge of legal affairs) and composed of all Internal Directors of the Board. The Risk Management and Compliance Committee holds a general meeting once a year, confirms progress on a quarterly basis, and reports to the Board of Directors each year on the status of activities. The Board of Directors oversees the activities of the Risk Management and Compliance Committee, discusses reports from the Committee, and gives improvement instructions as necessary.

The Risk Management and Compliance Committee carries out risk assessments on cross-group risks. The departments that manage the key risks selected through this risk assessment set Key Performance Indicators (KPIs) and action items, and work to mitigate these risks through their activities.

We aim to conduct risk reduction that is even more in line with business activities, so, in addition to risk assessment at the departments responsible for risk, risk priority levels are considered at the business divisions (business units and Group companies) level as well. General Managers select important risks, after the process of confirming appropriateness from a business management perspective. Furthermore, Group companies overseas study the priorities and appropriateness of high-priority risks as selected by each company within their departments or business units responsible for risk, as well as by their risk management coordinators, and select key risks.

As a result of the risk assessment, the key initiatives common to the Nissha Group in the fiscal year ending December 2025 have been selected: business continuity, labor and human rights (occupational safety and health), information systems, trade management, and intellectual property rights.

The Risk Management and Compliance Committee promotes corporate ethics and compliance activities throughout the entire Nissha Group. All Nissha Group bases in Japan and overseas appoint managers in charge of promoting corporate ethics and compliance.

The Group designates every October and November as Corporate Ethics and Compliance Months, and provides groupwide training at all bases in Japan and overseas. This simultaneous training is provided not just for full-time, contract, and temporary employees, but for managers of subcontractors and even part-timers.

At the Nissha Group, in addition to company-wide simultaneous training, we also hold compliance training designed for officers.

The Nissha Group has not only established an Internal Reporting Code in our company regulations based on the Whistleblower Protection Act domestically, but has also established a hotline consultation service which is available to all employees of the Nissha Group in Japan, as well as former employees who have left the company within the past year. This is for the purposes of quickly identifying the facts about illegal, unfair, or unethical conduct by an organization or individual, minimizing the risk of a crisis, promoting ethical and legal compliance, and ultimately enhancing our corporate value.

In addition, we set up a contact point for some of our domestic suppliers in the fiscal year ended December 2019, which was then expanded in April 2025 to cover all the domestic suppliers that the Nissha Group in Japan has dealings with.

Overseas, too, we have consultation services for all Group companies, where employees can discuss matters either in English or in their native language.