Risk management
Our group operates a diverse business which includes tobacco, pharmaceuticals, and processed food. We also operate on a global basis with offices in Europe, CIS, Africa, and the Middle East, among others. Due to this diversity and as we operate in a changing business environment, we are exposed to various risks.
We look at emerging risk such as increase in cyber/IT security risk, risk of natural disasters arising from climate change or increase in political risk. We examine financial and business risks such as the effect of currency fluctuation or impact of regulatory developments. Our approach to addressing key risks is detailed in our latest integrated report under 'Risk Factors'. We also address compliance risk as we strive to ensure all of our business operations are carried out with integrity.
- * While on May 7th, 2025, the Company announced entering into an agreement with Shionogi & Co., Ltd to transfer the pharmaceutical business and our stake in TORII PHARMACEUTICAL CO., LTD. ("Torii"), a consolidated subsidiary of JT, the JT Group's performance and initiatives described on this page include those associated with the pharmaceutical business and Torii. Please see the press releases on our website for the details
Risk management system
We have introduced consistent enterprise risk management (ERM) process across entire Group. That enables us to help achieving sustainable growth in the medium- to long-term, enhance our corporate values and mechanisms ensuring transparent, fair, timely, effective decision-making and roles and responsibilities allocation.
We identify risks that could have an impact on the Group, assess them in terms of their potential impact and likelihood in order to prioritize them, formulate mitigation plans, and monitor the plan’s progress.
Each business unit has consistently implemented ERM under the leadership of each business head and this initiative is reported to the ERM officer, who is appointed as the person in charge of ERM among senior vice presidents by JT Group CEO. Also, we have a forum with CEO, executive vice presidents and the ERM officer who oversees business unit ERM as members. In the forum, JT Group Enterprise Level Risks are identified and assessed, the mitigation owners are assigned and the progress of mitigation plans formulated by mitigation owners are monitoring. All such initiatives are reported to the Board of Directors.
Our key financial and business risks are considered by the Board of Directors on a quarterly basis. Internal audits are carried out by a division independent of the business, which reports directly to the JT Group CEO.
Crisis risk management
We have a crisis management and disaster response protocol, whereby a project team, headed by the JT Group CEO, can be swiftly called upon in times of crisis or disaster.
Compliance risk management
The JT Group Compliance Committee plays a significant role in the Group’s governance. Its aim is to oversee and promote compliance throughout the Group and, as a deliberative body, to ensure accountability to the Board of Directors. The head of the JT Group Compliance Committee is the CEO, and the committee includes the external expert and Executive Vice President.
We make every effort to ensure that our business operations are carried out in an appropriate way, and to gain a high level of trust and confidence from our stakeholders.