Hitachi Construction Machinery


Risk Management

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 always assess risks, and strive to prevent those risks, or to minimize influence when it occurred.

Compliance Promotion System

Risk Definition and Analysis

The Hitachi Construction Machinery Group categorizes risks into the following seven types. We work to prevent or limit the scope of damage from any and all losses (including human/material/financial damage, loss of credibility, legal violations and ethical violations) to the Hitachi Construction Machinery Group’s business, its’ employees and their families, and anyone related to the Hitachi Construction Machinery Group.

  • Accidents and disasters (natural disasters such as earthquakes and typhoons, fires and explosions, war, terrorism, etc.)
  • Local community (environmental problems, complaints from neighbors, etc.)
  • Corporate activities (conflicts with laws and regulations, product accidents, antisocial behavior/trade, etc.)
  • Legal affairs (violations of restrictions on insider information, antitrust law and foreign exchange law violations, illegal export, etc.)
  • General affairs and accounting (nonperforming loans, irrecoverable debt, monetary accidents, etc.)
  • Information (leaks of confidential information, computer malfunctions, etc.)
  • Company employees (work-related injury or death, work-related illness, discrimination, scandal, etc.)

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.

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.

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.

We aim to increase risk management awareness among employees throughout the Group, and to strengthening of companywide control systems.

Risk Management Related to the Environment

Risk Communication

We share information on chemical substances which pose environmental risks with local residents, and are achieving communication and mutual understanding through the exchange of perspectives.

Risk Management

Transformers, condensers, and fluorescent light stabilizers which use PCB are appropriately stored/managed and shipped according to laws relating to waste processing and cleaning, and the Act on Special Measures Concerning the Correct Processing of PCB Waste Material (the PCB Special Measures Act). We are proceeding appropriate treatment according to our plan.

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