Hitachi Construction Machinery


Perspective on risk

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

Defining 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 some 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, lost profits, 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 contravening company ethics, or the possibility of such.

Risk countermeasures

The HCM Group conducts risk countermeasures in accordance with the procedures determined 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.).

Establishing global risk management

The HCM Group is promoting the fortification 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 quickest possible recovery. We are also working to sustain our supply chain.

In FY2015, in addition to preventing risk we conducted internal business risk assessments for all domestic and overseas Group companies as an initiative to keep the impact from risk occurrence to the absolute minimum (risk minimization). In addition to increasing crisis management awareness among employees throughout the Group, in future we will be undertaking the reinforcement of company-wide management systems.