Company-wide risks are identified by identifying risks once in the first half and second half of the fiscal year targeting the secretariat of each committee that operates company-wide committees. The extracted risks are evaluated for their importance and urgency from a company-wide perspective, and issues identified as important themes are shared with the ERM Committee.
The ERM Committee discusses and makes decisions on risks that may shake the foundations of globally expanding businesses. These risks include environment-related issues such as climate change, pollution and disasters, pandemics, cybersecurity, human rights, geopolitical risks, economic security and community challenges. Basically, it is held once every six months, and it is also held temporarily in response to a sudden request for company-wide risk response and a request from the chairman or each committee / related department. Moreover, the Compliance Management Committee discusses ethical and legal violations, raises awareness to prevent incidents, and implements measures to prevent recurrence.
Important matters such as the policy of company-wide risk countermeasures by the ERM Committee and important compliance matters by the Compliance Management Committee will be reported to the Executive Board and the Board of Directors.
The Hitachi Construction Machinery Group is developing “Business Continuity Plans (BCPs)“ and strengthening its “Business Continuity Management (BCM)” to minimize the impact to business activities from risks that arise around the world from events such as natural disasters, and to attain the earliest possible recovery. We are also working to sustain and maintain our supply chain.
Since FY2015, in addition to preventing risks, we have implemented initiatives to keep the impact from risks that occur to an absolute minimum (risk minimization). We assess the level of impact and frequency of occurrence of risks, prioritize them, and implement measures.
In FY 2017, we introduced a safety verification system to our group companies in Japan that can confirm the safety of employees and their families when disasters such as large-scale earthquakes occur, regardless of the time.
Following this, we have carried out periodic safety response training that simulates what the system does after a disaster occurs.
Also, in accordance with the increase in natural disasters in recent years as a result of climate change, we are introducing a risk information management system for our companies within Japan beginning in FY 2019.
We are striving to ensure the safety of personnel and reduce the effects of disasters on business through uniform management of information concerning disasters, incidents, accidents, infrastructural impediment, etc.
Regarding important primary suppliers, we maintain information on secondary suppliers, identify disasters and regions, immediately check the safety and production status of suppliers, and promote business continuity.
For overseas business, we diligently pursue safety management on a daily basis. This includes collecting information, etc. from the Ministry of Foreign Affairs and specialist vendors about conditions overseas.
As for the global expansion of the COVID-19 infection from the beginning of FY2019, we have established a countermeasure headquarters to prevent infection and avoid the spreads of infection in both domestic and overseas bases, and strive to ensuring the safety of employee and their families, as well as our customers and other stakeholders, and minimize the impact on businesses.
We aim to increase risk management awareness among employees throughout the Group, and to strengthen companywide control systems.