Risk management system
We have established a risk management system around the CRO (Chief Risk Officer). Important risk-related matters are deliberated by the Risk Management Promotion Council and determined by the CSR Committee.
Risk management activities
We manage risks concerning company activities, including environmental preservation, security and disaster prevention, product quality, export control, agreements, etc., through preliminary reviews and an approval system based on internal rules and regulations. In addition, offices engage in efforts on a daily basis to minimize risks such as fires, explosions, leakages, work-related accidents, occupational diseases, poor quality products, and environmental contamination and keep their impacts to a minimum even if they should occur.
Our Group has been conducting risk inventory every year, including its overseas bases. Risk inventory is conducted in the order of (1) extraction of risks, (2) assessment of potential impact, (3) planning of countermeasures, and (4) implementation and confirmation of countermeasures. We plan and implement company-wide measures against common risks chosen from the risks extracted by each section. In 2016, we addressed common risks such as earthquake risks, information security risks, and general affairs risks.
We consider factors such as the estimated frequency of earthquakes and seismic motions in the regions where our offices are located in order to prioritize our buildings and facilities for seismic diagnosis and reinforcement work.
Moreover, since 2007, we have been working on business continuity plan (BCP), mainly assuming damage caused by earthquakes. With reference to the business continuity guidelines provided by the Cabinet Office of Japan, we create a BCP promotion framework, establish basic policies, determine important operations at each business division, worksite, and major affiliated companies, and find bottlenecks related to these important operations, and thus establish BCPs. We also promote business continuity management (BCM) activities, which are aimed at ensuring business continuity through documentation, education, training and review of BCPs.
Information security risks
The Showa Denko Group has its own Information Security Regulations and Personal Information Protection Guidelines to assist it in dealing appropriately with information-related risks. We also take every opportunity to help all employees understand these rules and raise security awareness among them through e-learning and Cyber Security Month activities. In April 2017 we renewed the content of the e-learning program. We are continuously enhancing information security also at our Group companies outside Japan.
As for targeted attacks, which have recently been posing a threat, we are collecting the latest information by participating in the activities of the Japan Chemical Industry Association and the Japan Petrochemical Industry Association. Further, we regularly conduct drills to reduce related risks by raising employee awareness.
General affairs risks
Since 2009, our Group has been continuing efforts to enhance risk management of general affairs operations. Specific examples are: (1)identification of administration risks by using the “Guidelines,” which cover operations related to general affairs from the perspective of risk management, as well as planning of countermeasures; (2) sharing of best practices and responses as well as enhancement of the database for better understanding of applicable laws; (3) conducting periodic manager meetings and general meetings (trainings) for general affairs personnel to reinforce cooperation among themselves; and (4)exchange of opinions at offices and plants.
In 2016, we had opportunities to exchange opinions about the risks at 10 of our bases. At the general meeting (training) held for general affairs personnel, participants shared the advanced initiatives implemented at the Chiba Regional Office. In addition to continuing these traditional measures, we are also taking new measures, including selecting six employees from among those in charge of the risks at the bases for a project to propose the direction and specific measures to be taken for the risks in and after 2017.
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