To prevent the emergence and expansion of risks to the SUBARU Group, the Chief Risk Management Officer (CRMO) appointed by the Board of Directors leads risk management and compliance activities, reporting their status to the Board of Directors.
Specifically, the implementation structure includes the Risk Management and Compliance Committee, chaired by the CRMO, with the Governance Risk Management Department^*1 serving as the secretariat. In addition, each department has appointed a risk management officer at the chief general manager level, who serves as a member of the committee. The committee deliberates on and discusses important matters, exchanges information, and maintains communication; depending on their importance, matters are submitted to the Board of Directors, which oversees the committee.
The CRMO leads corporate Group-wide efforts to enhance risk management with professional support from experts in corporate departments, such as the Governance Risk Management Department and the Legal Department. In this leadership role, the CRMO works closely with the Corporate Planning Department, which performs division-encompassing functions, as well as different divisions and companies. The Audit Department audits execution of tasks by each division and subsidiary in a planned manner.

*1

As the importance of risk management, compliance, internal controls, and Group governance continues to grow, we have integrated the Risk Management and Compliance Office and the governance promotion functions within the Secretarial Office to manage these areas in a cross-functional and integrated manner and to further strengthen their alignment with management. This integration led to the establishment of the new Governance Risk Management Department in June 2026.

Risk Management System

At the SUBARU Group, we extract and identify key risks associated with our business activities and take measures to combat them. Specifically, we advance Group-wide risk management by formulating and utilizing a Risk Map at the management level, taking into account changes in the external environment and the current business environment in addition to important risks identified by each division.
Through these efforts, we have identified the following 20 items as risks that have a significant impact on business activities in consideration of their likelihood of occurrence and degree of impact on business activities. These risks are reassessed on a regular basis as we continuously work to strengthen risk management.
For more details on each risk, please see Business Risks.

20 Risks Affecting Business Activities

The Risk Management and Compliance Committee, as part of its initiatives during times of normalcy, promotes activities for controlling risks during daily operations. It does this by identifying major risks for each department and prioritizing high-impact issues under our Group-wide Risk Management Policy and Risk Management Code of Conduct formulated for each department.
We are working to further strengthen our risk management, including the use of a Risk Map, in order to more reliably achieve the SUBARU Management Policy 2025 announced in 2025.
Furthermore, to mitigate key risks for the SUBARU Group, under the leadership of risk owners responsible for their respective risk areas, we are strengthening our response capabilities by establishing and enhancing a Company-wide BCP system designed to address large-scale earthquakes and conducting related drills. Regarding cybersecurity, in addition to our existing initiatives, we have appointed a Chief Information Security Officer (CISO) and established a Cybersecurity Committee to strengthen our cybersecurity response framework; these efforts are regularly followed up on by the Risk Management and Compliance Committee.
In addition, we conduct risk management training for staff responsible for implementing risk management activities in each department, with the aim of enhancing risk literacy and ensuring optimal risk management and greater effectiveness. We are also further enhancing our partnership with key subsidiaries outside Japan, promoting global risk management activities.