Hitachi Construction Machinery

Global

Perspective on risk

When engaging in corporate activities, there are risks of encountering natural disasters, accidents, or legal violations. Based on this awareness, the HCM Group address risk management under the lead of the Compliance and Risk Management Division. We define risks under the premise that “risks will always become actualized”, therefore we conduct risk assessments and address them through making rules that dictate how to handle them when it occurs.

Definition of risk

Risk is defined as the possibility of incidents, accidents, or other problems that may cause loss or damage directly or indirectly to the HCM Group’s business, employees or their families or to people with any connection with the Group.

Types of risk

  1. Damage to people: Death, injury, or the possibility of such.
  2. Damage to assets: Breakage or destruction of the company assets, hindrance in production or sales, etc. caused by such breakage or destruction, or the possibility of such.
  3. Financial damage: Payment of compensation, hindrance in generating profit, or the possibility of such.
  4. Loss of trust: Loss of trust in the Company, our products or employees, etc., thereby damaging the Company’s image, or the possibility of such.
  5. Breach of laws and regulations: Breach of laws and regulations, or the possibility of such.
  6. Breach of ethics: Acts against company ethics, or the possibility of such.

Measures against risks

The HCM Group conducts measures against risks in accordance with the procedures established by the Compliance and Risk Management Division.

  1. When a risk arises, we will implement initial measures immediately. We will promptly ascertain the risk level and decide the range of the people to be informed, according to the severity of the risk.
  2. We will make constant efforts to raise the awareness of employees and other relevant persons to ensure that they recognize risks as risks, thoroughly understand the importance of compliance, proactively work to prevent the occurrence of risks and scandals, and take proper measures to cope with risks when they occur.
  3. When a risk arises, or there is the possibility of such, no matter how minor the risk is, we will immediately report the matter to a superior or to the Compliance Promotion Department manager.
  4. We will regularly check risk potentialities and take measures to prevent the occurrence of each risk.
  5. We will always endeavor to maintain good relations with the local community (including police stations, labor standards inspection offices, fire stations, public employment security offices, local residents, etc.).

Enhancing global risk management

The HCM Group is promoting to enhance of the risk management system for the overall Group in order to grow as a global corporation.

The HCM 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 maintain our supply chain.

From FY2015, in addition to preventing risks, we 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. We aim to increase risk management awareness among employees throughout the Group, and to strengthening of companywide control systems.