JSR Group believes that preventing a major crisis from occurring and minimizing its impacts on business activities is an important management role. The Group has formulated Risk Management Policies and established a Risk Management Committee through which it actively pursues risk management activities.
JSR Group risk management is handled by the Risk Management Committee, which 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.
Since FY2009, JSR Group has fulfilled group-wide annual risk management procedures using its unique risk management system under the initiative of the Risk Management Committee. For each division of JSR Group companies in and outside of Japan, we identify and evaluate all potential risks, and formulate measures to control such risks. In FY2015, we revised risk identification methods after reviewing the validity of previous JSR Group risk management. Utilizing a risk map that represents level of business impact and frequency of occurrence, we identify risks that could have a significant impact on business continuity and organize them risks into the JSR Group Risk Factors. By monitoring and regularly reviewing risks that senior management has personally ascertained, we are building and maintaining a system for prevention and crisis preparedness.
Procedures which comprises BCM/BCP* systems in place for both peacetime and emergency situations.
These procedures define the BCM organization and the actual BCP, which includes stipulations on target recovery times, and BCP activation and cancellation standards. They also define the organizational structure that takes effect during activations of the BCP, and corresponding priority businesses and operations.
* BCM: Business Continuity Management/BCP: Business Continuity Plan
A BCP defines activities that need be conducted before the occurrence of an emergency situation that may threaten the survival of a company (large-scale natural disaster, explosion/fire, terrorist attack, etc.), judgment criteria and action guidelines that enable business continuity in the event of such emergencies, and other matters necessary for ensuring the continuity and early restoration of important businesses. BCM is a management system that has been developed to operate and continuously improve the BCP through a PDCA (plan-do-check-act) cycle.
JSR Group adopted a mid-term business plan in FY1995 concerning preparations for a major earthquake and has been conducting systematic activities to enhance those preparations. After FY2006, we 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. These initiatives are scheduled for completion by FY2020.
The Yokkaichi Plant Administration Building, completed in December of 2013, can withstand earthquakes of up to 600 Gals using two types of seismic isolators: laminated rubber and oil dampers. In addition, the lattice structure ground improvement method was used to prevent liquefaction to help further improve resistance to earthquakes. This building has warehouses in preparation for disasters and was designed to ensure enough space for the headquarter functions to continue in the event of disasters in the headquarter region (metropolitan Tokyo area). This building also functions as the Yokkaichi City Tsunami Evacuation Building for local residents.
Completed in July of 2014, Yokkaichi Plant Clean Room Building C incorporates advanced soil liquefaction prevention measures and a seismic isolation structure to ensure the stable operation of precision instruments and resistance to earthquakes. Valuable equipment is installed in higher floors to prevent possible damage from tsunamis.
Since 2004, JSR has held crisis management training once a year to strengthen the ability of the headquarters for accident and crisis control in the Head Office (Minato Ward, Tokyo) to respond in a time of crisis. Members from the headquarters participate in the training, and JSR's President acts as the headquarters' director. The training for FY2017 was based on a scenario in which an earthquake strikes Tokyo (specifically, a major earthquake centered in the northern area of Tokyo Bay), causing damage at not only the Head Office but also plants and offices in the Kanto area, including those of JSR Group companies. The scenario further assumed that the chief decision-maker in the headquarters is not present, making it necessary for another employee to take over the headquarters' operations.
The headquarters for accident and crisis control during the FY2017 crisis management training
In the past, the training was a simulation of responses on the day of a disaster, with the main focus being on verifying the headquarters' operation and coordination of information. However, in this year's training, primary attention was paid to the responses of each of the headquarters' teams on the second day following a disaster. It was conducted using a "blind scenario" format.* Some 50 people, including those affiliated with the Head Office's headquarters for accident and crisis control, participated. Each confirmed the personal and organizational actions that are demanded, including spontaneous information-gathering in an ever-changing situation and the establishment of response guidelines.
By conducting drills that anticipate a variety of potential disasters, we will continue to make the preparations needed to ensure safety, control damage, maintain business continuity.
* Blind scenario format
A drill format that gives participants a constantly changing disaster or damage situation based on an undisclosed scenario, and then asks them to independently consider, identify, and execute responses.
We held BCP training for JSR Group companies in Japan during FY2017.
The training was the first ever held for the purpose of strengthening the crisis response capabilities of headquarters for accident and crisis control in Group companies. Twenty people from seven Group companies participated.
Through the training, the participants gained renewed recognition of the importance of setting decision-making standards for appropriate responses during emergencies in advance, and the importance of continually improving emergency-response manuals.
We will continue implementing training that anticipates a variety of crises with Group companies. We will also continue making preparations that will allow JSR Group to limit damage and maintain business operations following a crisis.
BCP training for JSR Group companies
JSR Group conducts disaster management and evacuation training and drills on a regular basis. It is imperative that we minimize the impacts of emergencies and ensure business continuity in such situations.
General disaster drill conducted jointly by plants and offices in the Kashima District (JSR, Japan Butyl, and Kraton JSR Elastomers)
In FY2009, 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 FY2011, we expanded the system's coverage to our Group companies and the families of our employees.
In the case of an epidemic or the spread of influenza and other infections, we stockpile masks.
We also provide necessary information such as the announcement of flu outbreaks.
Prior to the 2017 flu season, we invited doctors and nurses to JSR's Head Office and the Yokkaichi, Chiba, and Kashima Plants to administer vaccinations to those who desired one. This activity was intended to keep infections from spreading in our workplaces and also to make sure that the cases of influenza that do occur stay minor.
JSR Group adopted an Information Security Policy and is working to implement appropriate information management by informing all personnel of the policy.
Information security handbook
JSR Group is continually working together with external experts to increase our level of security and protect corporate information assets from cyber-attacks. In FY2014, we issued an Information Security handbook to raise employee sensitivity to information leakage risks and help ensure that employees are aware of and follow rules regarding information security. We also conduct targeted attack drills using fake viruses to raise prevention awareness. In addition, we are engaged in raising awareness of the content in the Information Security handbook through e-learning and workplace meetings.
