Risk Management

Risk Management

Basic Approach

The IBIDEN Group enables business continuity by analyzing various risks surrounding management, accurately handling losses of business resources that have a great negative impact on the ease of our business operations, ensuring the safety of our shareholders, customers and officers, and reducing and preventing losses of business resources.

Action Plan

  1. We devote efforts to maintaining the safety and health of employees and business partners and to conserving operating resources.
  2. We conduct ourselves so as not to impinge upon the safety, health, or profits of our shareholders, customers, and local and international society.
  3. In cases where risk is manifested, we work to achieve prompt response and recovery through responsible action.
  4. We reflect social demands related to risk in our risk management.
  5. We provide required information in order to avoid or reduce possible damage caused by misunderstanding and a lack of understanding.

Structure for Advancing Risk Management

Based on the resolution of the Board of Directors, the Group has established Risk Management Regulations to create a risk management structure and its management process. We also created the Risk Management Company-wide Promotional Committee, which is tasked with improving risk management. The Risk Management Company-wide Promotional Committee is responsible for considering and deciding on general risk management issues. It also examines and reports the progress of actions to address major risks. To execute the policy endorsed by this Committee, a section responsible for each risk category is established to carry out activities geared to IBIDEN's circumstances and business model, as well as with those of its Group firms.

Risk Assessment and Addressing risks

The IBIDEN Group undertakes risk management activities so that we may continue to reliably conduct our business operations. We regularly detect and assess risks to reduce risks in important areas: operational divisions are working on the risks related to strengthening our business competitive edge, while functional divisions are addressing the risks bringing serious repercussions to the Company's business.
These risk management activities are implemented in conjunction with the policy management of each Division. In fiscal year 2015, we discussed information security management as a common theme at a meeting of the Risk Management Promotion Subcommittee held monthly. A section responsible for each risk category carried out reviews of risk reduction activities for risk events in the risk category, conducted activities to address issues, and worked on raising the level of risk management.

Business Continuous Plan

We consider the risk of disruptions to production caused by the occurrence of a large-scale accident or a disaster in areas where our plants are located as an important risk theme, and are taking measures to prepare for the occurrence of a disaster. As for measures to be taken when disasters such as earthquakes occur, we believe that lifesaving comes first, followed by the early supply of products to customers.
In fiscal year 2015, we prepared emergency response procedures and drills, in which damage assumptions and headquarters were specified. In fiscal years 2014 and 2015, we developed procedures for handling communication internally and externally in the event of a disaster or a problem. In addition, we updated the safety confirmation system and conducted drills that simulated a large-scale earthquake with a maximum seismic intensity of 6, and we are considering a plan for company-wide initial response drills that simulate a large-scale disaster.