Basic Policy on Risk Management
SCSK’s Risk Management Regulations define risk as the possibility of incurring loss and the possibility that returns obtained from business activities fall short of will deviate from expectations. To ensure the stability of the SCSK Group’s business activities and enhance corporate value, we examine all possible forms of risk during execution of business activities and engage in continuous risk management with the purposes described below.
| Consistent performance and growth |
Increase the consistency of performance and ensure sustainable growth by administering operations so that actual results do not vary from forecasts. |
|---|---|
| Reinforcing corporate structure |
Limit losses from latent risks posed by the business model to enable business continuity even when risks emerge. |
| Maintain trust |
Maintain and increase trust by fulfilling corporate social responsibilities including legal compliance. |
Risk Management System
To appropriately manage risks that could have a serious impact on business, SCSK has the Risk Management Department as the responsible unit and conducts Group-wide risk management. While business groups and Group companies engage in day-to-day risk management, the Group Corporate collaborates with them on top of managing its own risks.
In accordance with the Risk Management Regulations, we conduct risk assessments (identifying, analyzing, and evaluating risks) on an annual basis. Joining hands with other units, the Risk Management Department develops a risk scenario, clarifies risks, evaluates them on the two dimensions of impact and probability, and visualizes the results into a Group-wide risk map. Risks are evaluated quantitatively to the extent possible, while also using some qualitative methods. With respect to material risks that are determined to require focused efforts as a result of the evaluation, we work to undertake proper measures, paying attention to their characteristics and status. Those measures are monitored, and then reviewed based on their outcomes.
To ensure the proper functioning of these risk management activities, the Risk Management Department centrally monitors and evaluates the risk management situation from a Group-wide perspective, reports regularly to the President, and receives instructions on the risk response policy as needed. The Risk Management Department also reports on the overall situation of its activities first to the Management Committee and then to the Board of Directors.
The SCSK Group is working to enhance risk management through the above risk management activities in order to adapt to the changing business environment.
Emergency Response and Business Continuity Plan
In preparation for unforeseen emergencies that could have a major impact on the SCSK Group, such as major disasters and pandemics, SCSK has established rules of conduct and organizational frameworks. We are implementing a number of advanced measures, centered on the Disaster Risk Management Subcommittee, which is composed of related departments at each office and with the president or office manager serving as the person in charge. These measures include stockpiling food, water, and other supplies, conducting drills with the employee safety confirmation system, conducting training on setting up disaster headquarters, establishing a system to address emergencies that take place at night or on holidays, creating a disaster response website, and sharing information and raising awareness among employees through disaster response portal, e-Learning, and disaster preparedness seminars. Furthermore, we are working to ensure the effectiveness of the business continuity plan by conducting annual reviews.
Safety Confirmation Training
SCSK introduced its employee safety confirmation system, the purpose of which is to confirm and ascertain the safety of employees and their families and damage at the various offices when a disaster occurs and to quickly restore business, in 2011, and conducts regular drills involving all employees.
Initiatives Related to Risk Reduction at Homes Accompanying Changes in Work Styles
At SCSK, we are working on not only natural disaster countermeasures for offices but also activities to raise awareness about countermeasures for individual employees’ homes (disaster risk reduction at home) as a growing number of employees work from home. As part of this, we issue a Home Disaster Prevention Manual, and provide e-learning training and seminars to all employees. We are working to create a business continuity system by continuing to implement natural disaster countermeasures at both the office and homes.
