SCSK has set the Risk Management Regulation in relation to the risks it may be exposed to during its business activities. The regulation divides risks into four categories: 1) strategic risk, including market, business opportunity, and investment risk; 2) operational risk, including litigation, environmental, and labor affairs risk; 3) financial risk, including inventory and foreign exchange risk; and 4) hazard risk, including natural disaster, information system, and accident/malfunction risk. In accordance with this regulation, SCSK makes efforts to thoroughly understand and anticipate risks both inside and outside the Company and makes recommendations to its management on how to address risks. In this way, SCSK works to maintain and enhance its credibility as a corporation. At the same time, in the case that a risk materializes, the Company works to minimize losses and maintain stable business activities.
Emergency Response and Business Continuity Plans
To prepare for the occurrence of large-scale disasters, pandemics and other unforeseen circumstances that may have a grave impact on SCSK and the SCSK Group, the Company has established rules of conduct and organizational frameworks to respond to emergencies. The Company, led by the Disaster Risk Management Subcommittee, is taking a number of advanced measures, such as stockpiling food, water and other supplies; conducting drills for adopting an employee safety confirmation system and setting up disaster headquarters; establishing a system to address emergencies that take place at night or on holidays; and sharing information and raising awareness among employees through the disaster response portal, e-learning and disaster preparedness seminars. Furthermore, the Company re-examines its current business continuity plan (BCP) each year for further improvement.
SCSK is also working to reinforce its disaster response measures based on an assessment of the effectiveness of these measures conducted by a risk management consulting company. Taking into account the promotion of telecommuting that forms part of our working style reforms, we are working on measures to reinforce disaster preparedness at home, including distributing the Disaster Preparedness Handbook to all employees. Through these activities, we are working collectively as a Group to ensure our BCP is highly effective.