Risk Management
Basic Approach
The JSR Group believes that preventing a major crisis from occurring and minimizing its effects on business activities is an important role of management. The Group has formulated a Risk Management Policies and established a Risk Management Committee through which it actively pursues risk management activities.
The Risk Management Committee performs group-wide risk management and formulates response policies concerning actual and potential risks other than those arising in the normal course of business that are addressed in major conferences such as meetings of the Board of Directors*.
*Risks arising in the normal course of business that are addressed in major conferences, such as meetings of the Board of Directors, are strategic risks that include those associated with capital investment and M&A.
Risk Management Measures
In FY2012, we identified risks at all divisions of the JSR Group, selected 13 major company-wide risks, and formulated policies regarding how to deal with each of the risks, in order to ensure risk control from a management perspective. In the latter half of FY2012, utilizing outside experts, we began working on the review and improvement of the existing system, with a view toward establishing an even better risk management system. We will continue to annually identify risks at all divisions of the JSR group, including those of our overseas companies, make assessments, and formulate necessary measures.
Furthermore, the JSR Group formulated a Risk Management Manual in FY2005 and strengthened systems that will be applied in the event of a major crisis. The Risk Management Manual contains guidelines that specify policies for dealing with crises and recommendations for actions by each division in the event of a crisis, with the goal of minimizing impacts on business activities. We revise the manual and strengthen systems based on the results of crisis management training carried out each year.
Business Continuity Management
Since the establishment of our risk management system as preparation for large-scale disasters and other risks, with an emphasis on initial responses, we have been administering the system thoroughly based on our risk management manuals. In terms of the globalization of our businesses, we have incorporated a perspective of risk dispersion, which is reflected in our selection of sites for our business establishments. Following last year's Great East Japan Earthquake, we began to fully introduce the concept of business continuity management (BCM). Systemizing our previous measures and systems and compensating for deficiencies, we are now striving to establish a framework to ensure the organic coordination and function of each measure and the system as a whole.
Crisis Management Drills
Every year since FY2005, the JSR Group has conducted crisis management training. On the assumption of the occurrence of a large-scale disaster, this training is conducted jointly by the head office and any of our business establishments. The purpose of the training is to enhance our crisis response capabilities to minimize the damage and impacts inflicted on our stakeholders in the event of a major disaster.
In FY2012, we conducted a simulated training on the premise of the occurrence of an earthquake, tsunami and fire at the Chiba Plant, with crisis centers established locally and also at the head office. Although this training showed that there was no problem with the evacuation of employees at the plant, new problems were found such as the problem that issuance of directions for employees to return home should only be made after the damage situation of areas surrounding the plant was identified. We will continue to periodically carry out this crisis management training to reinforce our crisis management system. We will also continue to promote our utmost efforts to prevent all accidents and disasters, and to strengthen our system for promptly responding to emergency situations in order to minimize risks.
Preparations for a Major Earthquake
The JSR Group adopted a mid-term business plan in FY1996 concerning preparations for a major earthquake and has been conducting systematic activities to enhance those preparations. In FY2007, we revised the mid-term business plan, began a seismic retrofitting project focused on high-pressure gas facilities in our plants, and installed an earthquake early-warning system at all JSR business sites.
In FY2011, we performed an analysis of the effects of various earthquake magnitudes on each business site and strengthened our systems based on the results.
Based on lessons learned from the experience of the Great East Japan Earthquake, we will further reinforce the anti-seismic capabilities of our buildings and incorporate the perspective of countermeasures against tsunamis.
Safety Confirmation System
In FY2010, we introduced a safety confirmation system to promptly identify the safety of our employees in the event of a large-scale earthquake or other disaster. In FY2012, we expanded the system's coverage to our Group companies and our employees' families.
Influenza Countermeasures
JSR is improving the pandemic influenza countermeasures it formulated in FY2009 to make them more practical in responding flexibly to influenza strains of varying virulence.
Information Security
The JSR Group adopted an Information Security Policy and is working to implement appropriate information management by informing all personnel of the policy.
- The JSR Group (the corporate group consisting of JSR Corporation and its subsidiaries) will observe laws and other social norms relating to the handling of information belonging to the Group and its customers, business partners, and other third parties, and will protect that information in appropriate ways.
- The JSR Group will strive to develop and actively use its information assets for the efficient execution of its business. The Group's officers and employees will only use these information assets for the purposes of their work and within the scope of their authority.
- The JSR Group will improve organizations and systems, provide education on information security, thoroughly disseminate this policy and related regulations, and implement measures to ensure information security.
- The JSR Group will implement appropriate human, organizational, and technological measures and work to prevent unauthorized access to information assets from outside the company, as well as leaks, falsification, loss, theft and destruction of information assets.
- If an information security-related problem occurs, the JSR Group will promptly identify the cause and take measures to minimize damage and prevent recurrences.
- The JSR Group will periodically assess and review its information security measures to respond appropriately to changes in external environments.