Risk Management

We are striving to construct a system that prevents risk so that we do not lose corporate value or the trust of the public.

Risk Management

Each year, the azbil Group conducts an interview-based survey of officers and heads of major departments, in order to bring to light all risks that could potentially have a serious impact on the Group as a whole. The Board of Directors then determines the azbil Group’s key risks with the aim of facilitating the implementation of Group-wide measures to prevent key risks from materializing. By means of these steps, each potential risk is appropriately addressed. We have also extended the scope of these initiatives to encompass each individual Group company, continually mitigating risks through implementation of a risk management system that covers everything from the identification of the key risks for each company to the implementation of measures to combat those risks and reporting of the outcomes to the Board of Directors of the company concerned.

Enhancing Disaster Preparedness and Business—Continuity Planning (BCP)

Regular emergency drills are conducted.

Under the leadership of the azbil Disaster Preparedness Liaison Committee, we are endeavoring to improve our disaster preparedness by conducting regular inspections at all of the azbil Group’s domestic business establishments, identifying risks and considering and implementing countermeasures. Our continuing efforts to strengthen the azbil Group’s overall disaster preparedness include the development of a manual to guide the initial responses to a major earthquake, improvement of our system for checking the safety of employees,establishment of a workplaceemergency contactnetwork, enhancementof our communications infrastructure for disasters,relocation of offices to buildings that meet new earthquake resistancestandards, and regular emergency drills. In addition, our ongoing business continuity planning (BCP) aims to ensure that in the aftermath of a major disaster, business establishment and factory functions are restored at the earliest possible time and that maintenance services continue to be provided at customer sites.

Upgrading and Reinforcing the Information Management System

As well as conducting an educational program on information security for all Group employees every year, we are addressing information management issues that emerge in the course of compliance awareness surveys, and are upgrading and reinforcing our framework for managing important information and personal information to ensure tight control throughout the Group. To ensure that the operational level of services will not be significantly compromised during a disaster, we are upgrading our backup systems, including relocation of our network equipment and servers and installation of emergency power supply equipment.