Risk Management - Management - CSR Report 2013 - JSR Corporation

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CSR Report 2013

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

RM seminarRM seminar in the Head Office region RM seminarRM seminar in the Yokkaichi region

Since FY2010, the JSR Group has fulfilled group-wide annual risk management procedures using its independently developed system. For each division of the JSR Group, we identify and evaluate all possible risks ranging from explosions, fires, and major earthquakes to pandemics, and formulate measures to control such risks. We designate particularly serious risks as “major company-wide risks.” The Risk Management Committee and the CSR Committee monitor progress in improvement.
In FY2013, we identified risks at all divisions of the JSR Group, selected 14 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 FY2013, we also underwent a comprehensive review process by outside experts to verify our existing system. Through interviews with 24 key divisions in the company, the review revealed that the system was appropriate and operated properly in general despite the presence of some deficiencies. To help improve our risk management practice, we held risk management (RM) seminars for leader-class employees of JSR and its group companies in November 2012.

Takehito Nagai

Consulting I
InterRisk Research Institute & Consulting, Inc.
Takehito Nagai

The JSR Group has independently developed and operated a risk management system for a number of years. To check on and evaluate the system and programs, the Group called on InterRisk Research Institute & Consulting to carry out a review process.
To confirm the completeness of the risk management system and rules as well as the actual activities carried out at each division, our inspection and evaluation process was performed by checking documents and conducting interviews with more than 20 divisions. We confirmed that the JSR Group had solid structures and systems in place for managing risk and consistently promoted risk management activities. In particular, we highly evaluated the JSR Group for promoting activities group-wide and for reviewing the previous year’s activities and making necessary improvements every year.
However, it was also necessary to point out some aspects that needed attention. One example is the role-sharing arrangement. Risks may be overlooked if no or insufficient resources are allotted to particular risks as a result of organizational reform or lack of attention paid during routine work. It is vital to reconfirm the division of roles for risk management and to maintain reliable and efficient systems.

Reinforcement of the BCM System

Given the experience of the Great East Japan Earthquake in 2011, we began to establish a system with special emphasis placed on the concept of business continuity management (BCM). In FY2013, we established a BCM system based on the assumption that production at the Yokkaichi Plant would be suspended for a certain period of time. We conducted a business continuity initial response drill in order to simulate the experience of the flow from the initial response to the onset of BCM actions in the event of a large-scale disaster. From this year onward, we will introduce the BCM program into other plants and group companies in order to enhance our BCM capabilities throughout the Group.

Crisis Management Drills

Crisis Management DrillsCrisis Management Drills

Since the establishment of our risk management system as preparation for large-scale disasters and other risks, with an emphasis on initial responses, the Disaster Response Task Force of the Head Office has conducted annual crisis management drills jointly with each plant. In FY2013, we conducted a business continuity initial response drill under the supervision of outside experts. This was designed to provide employees with a simulated experience for each process from the initial response to the onset of BCM actions.

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.
Based on lessons learned from the experience of the Great East Japan Earthquake, we are further reinforcing the anti-seismic capabilities of our buildings and implementing safety measures by incorporating the perspective of countermeasures against tsunamis.

Safety Confirmation System

In FY2010, we introduced a safety confirmation system to promptly confirm 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. In addition, we have established bases to stockpile anti-influenza drugs to be distributed to employees of domestic and overseas Group companies.

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.

Information Security 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.

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CSR Report 2013