Risk Management

Fundamental concept

The Kumagai Gumi Group is working to accurately identify and respond to risks associated with our business activities, in order to achieve sustainable growth and earn the trust of society.

Risk Management System

In April 2025, Kumagai Gumi established the Risk Management Committee, which is chaired by the President. The committee aims to strengthen companywide risk management by clarifying accountability for risks and centrally managing risks and countermeasures across departments.

Recognized Risks

Risks that the Kumagai Gumi Group is aware of are listed below. We disclose information by, for example, listing it on our Securities Report.

Business Continuity Plan (BCP)

In the event of a major disaster, Kumagai Gumi will make every effort to provide emergency support and restoration work of infrastructure in respond to requests from customers and local communities. We have formulated a Business Continuity Plan (BCP) for contributing to prevention of secondary accidents, the restoration of urban functions, the safety of local communities, and the recovery of the economy. We have also established a permanent Crisis Management Committee to maintain and improve the effectiveness of the BCP, formulating fiscal year plans for BCP activities based on the PDCA cycle. We coordinate with group companies and partner businesses to conduct annual BCP drills, and we review and improve our plans based on the results of these drills and other factors.

Prevention of Insider Trading

The Kumagai Gumi Group complies with the Financial Instruments and Exchange Act and related laws and regulations, and has established Internal Regulations on the Prevention of Insider Trading to enhance the effectiveness of compliance. Based on these regulations, we have established an Insider Information Management Committee for managing information related to important facts, in order to perform information management across the company.
The Insider Information Management Committee issues notifications four times a year to alert officers and employees who may come into contact with insider information on a daily basis. If these officers and employees intend to buy or sell Kumagai Gumi shares, a system is in place that permits buying or selling of Kumagai Gumi shares by officers and employees at certain times only if the Insider Information Management Committee has verified that the transactions do not fall under the scope of insider trading.

Information Security

Kumagai Gumi established the Information Incident Response sub committee, a subgroup of the Crisis Management Committee, to prepare for information security incidents. In addition, the Kumagai Gumi Group CSIRT (KUMA-CSIRT) is set up to allow the entire group to enhance information security incident prevention activities and to strengthen the response system in the event of an incident.

For the entire Kumagai Gumi Group, we conduct targeted attack e-mail training and security education, aiming at fostering awareness among all executives and employees.
The implementation of CrowdStrike allowed us to outsource security operations and establish a framework for continuous monitoring. As a result, we are now able to detect and respond to threats in real time, achieving a substantial reduction in security risk.

Protection of Private Information

Kumagai Gumi has established fundamental rules and regulations, such as the Basic Principle, the Privacy Policy, and the Personal Information Protection Regulations, and engage in initiatives to properly handle and protect the personal information of all stakeholders, including shareholders and employees. We ensure through compliance training and other means that all officers and other employees are aware of the importance of protecting personal information, and continuously improve the management system and framework.