The JAL Group manages risks by dividing them into three categories: (1) operational risks associated with aviation safety, aviation security and other issues related to air transportation; (2) corporate risks associated with management in general, excluding risks related to air transportation; and (3) strategic risks associated with business management that may have a material impact on corporate revenue and expenditures.
With respect to aviation safety, we have established a Council for JAL Group Safety Enhancement chaired by the President of Japan Airlines Co., Ltd. and composed of directors appointed by the President and Presidents of Group airline companies. We have also established the Operational Safety Promotion Committee under the Council for JAL Group Safety Enhancement, headed by the General Manager of Corporate Safety & Security of Japan Airlines Co., Ltd. Members include the Vice Presidents of safety management departments and board members in charge of safety at Group airline companies. The Operational Safety Promotion Committee monitors and evaluates the safety management system based on the status of flight operations. By formulating and evaluating plans, policies and measures on aviation safety and making overall adjustments and offering recommendations, advice and guidance, the Committee seeks to maintain and strengthen collaboration between departments and between JAL Group airlines on issues related to safety and enhance the safety level.
To stabilize Group management by comprehensively managing risks other than those associated with aviation safety which includes safety and security management, we have established the Risk Management Committee based on the JAL Group Basic Policies on Risk Management. Headed by the Executive Officer of General Affairs, the Committee establishes basic risk management guidelines, submits progress reports, and shares information on measures taken when risks are identified. The Risk Management Committee conducts annual fixed-point observation related to risks faced by each Japan Airlines department and major JAL Group companies. We endeavor to build a common awareness of the results of observation and responding policies at the management level. We also assess and analyze identified risks and assist overseeing departments in taking swift action to prevent risks from materializing.
In addition, we have established an Information Security Committee headed by the Executive Officer of General Affairs and Executive Officer of IT Planning to strengthen our control over personal and corporate information handled by the entire JAL Group.
We have also established the Financial Risk Committee headed by the Executive Officer of Finance and Accounting to provide senior management with an appropriate understanding of financial risks. The Committee regularly monitors the results of financial condition simulations, estimates the potential impact of risks that may materially and quantitatively affect corporate performance, and responds to risks as necessary in tandem with the Risk Management Committee.