About Risk Management

Academic institutions, such as universities, are required to ensure compliance and appropriate management of research information as part of their social responsibility in education and research activities. For this reason, Nagasaki University established the Risk Management Division in the Research and Development Promotion Organization in July 2018. The Risk Management Division primarily manages risks related to education and research activities, including Export Control, Access and Benefit Sharing (ABS) compliance with the Nagoya Protocol, research ethics education management, conflict of interest management, and dual-use research surveys.

The term “risk management” is defined as “a method of management and operation that minimizes losses by taking into account the various risks associated with corporate activities” in Kojien dictionary. To paraphrase the description in Kojien, it can be thought of as “taking into account various risks associated with corporate activities,” that is, “risk,” and “management and operational methods to minimize losses,” that is, “management.” In other words, risk management is the consideration of risks and benefits gained by taking risks from a managerial standpoint, and systematizing the personnel, budget, responsibilities, and processes necessary for this purpose, in order to minimize the cost of risk (profit and loss) and maximize the benefits gained. Managing according to laws and regulations, following the instructions of the person in charge, refers to risk control and not risk management.

If the Risk Management Division deals solely with risks, it would become a mere cost center (a management term that refers to a department in the management of an organization where costs are aggregated but profits are not). The Risk Management Division is simply a department that responds to risk. The Risk Management Division must not only respond to risks but also consider the benefits (gains) of taking risks.

For example, in Export Control, by conducting appropriate compliance management, the department can gain the trust of counterparties or funds as a benefit (gain), as well as the international trust of these counterparties' foreign companies. The department must also consider the benefits (gains) gained from trust. The role of risk management is to maximize the benefits (gains) gained from this trust and further develop the organization. Similarly, by conducting appropriate risk management in response to the Nagoya Protocol on ABS, we can gain the trust of our counterparts, and through building a relationship of trust with our research partners and their respective countries, we can facilitate our research activities and contribute to their development by appropriately allocating profits to them. This is the key to success.

For universities and other institutions to develop further in the future, we believe it is necessary for them to actively engage in risk management. To this end, the Risk Management Division should not only deal with compliance but also with related activities such as industry–academia collaboration and international exchange in an integrated and cross-functional manner to minimize organizational costs and maximize benefits. Risk management efforts through universities and other organizations should not be based on corporate social responsibility (CSR), but rather on the creation of shared value in terms of creating shared value (CSV). By conducting appropriate risk management, an organization not only pursues compliance and sustainability but also contributes to society by conducting socially meaningful business activities from a medium- to long-term perspective, especially when taking into account social and economic conditions. This also ensures sound organizational management.