Risk Management
Risk Management System
To deal with events that may interfere with the achievement of its business goals or hamper sustainable management, the Company has established a Risk Management Committee that reports to the Board of Directors. Headed by the Chief Risk Officer, company-wide risk management is carried out in accordance with the Company’s Risk Management Regulations. The Committee formulates and implements measures to prevent the occurrence or recurrence of risk and monitors risks based on information collected from all departments.
The Internal Audit Department verifies the implementation status of the initiatives that have been formulated and implemented.
Ascertaining of/Responding to Risk
The Company has created a Hirata Risk Map that broadly classifies 70 risk items into four categories: management process risks, which include governance; external factor risks such as market changes; indirect business process risks that cover human resources and IT systems; and direct business process risks related to business activities such as production. Based on the Hirata Risk Map, the Company has established the main department in charge of each risk item, and put in place a mechanism whereby the information collected on assumed and incurred risks is aggregated by the Risk Integration Department that has been placed in overall charge.
From the aggregated risk information, the Risk Integration Department comprehensively reviews factors that include the nature of the risk, the likely magnitude of its impact, and the level of priority. Deliberations are conducted by the Risk Management Committee and Compliance Committee, and reports made to the Board of Directors as necessary.
Business Continuity Plan (BCP)
Based on its BCP policy, the Company is working to prevent, defend itself against and mitigate risks. In the event of an emergency, the BCP organization will be central to the initial response and business continuity/recovery in accordance with the flowchart for implementing the BCP.
BCP Policy
To as far as possible avoid unexpected disasters or problems that could endanger business continuity, we plan to continue business by having extracted risks in advance, and preventing, defending ourselves against and mitigating those risks, and to restore business operations in a short period of time in emergency situations.
- Give top priority to the lives and safety of employees and their families.
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Minimize any negative impact on our customers’ businesses.
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Assist our stakeholders.
We review our Business Continuity Plan on a regular basis for continuous improvement.
Flowchart for Implementing BCP
