Risk management for forecasting and assessing risks from changing business conditions, for preventing risks to the Group as a whole and for taking proper steps to alleviate losses is essential for ensuring the consistent and stable growth of the Group. We are extending our network of risk control and increasing stability in business management.
The azbil Group’s Total Risk Management
In order to strengthen the azbil Group’s risk-handling capabilities, risks that could significantly impact our business are now identified through comprehensive annual surveys and are deliberated at board meetings to determine which key risks require the response of the Group as a whole. As three years have now passed since this initiative was first implemented, in response to changes in the social environment, amendments of laws, revisions to regulations, riskhandling examples of other companies, and the experience of the Great East Japan Earthquake, we have redefined the scope of risks that we are targeting in order to arrive at more concrete countermeasures. Other improvements include revisions to our risk assessment methodology.
Disaster Prevention and Business Continuity Planning
The azbil Group has put considerable effort into disaster prevention measures by significantly reducing the number of seismic risk locations in all of its business offices in Japan, moving offices to buildings that meet new earthquake-resistant design standards, holding earthquake drills that take into account the initial response of the business continuity plan, expanding its safety confirmation system, deploying and managing emergency supplies, and multiplying our lines of communication. We were very fortunate that no serious injuries or loss of life occurred at our business offices as a result of the Great East Japan Earthquake. After the earthquake, supplies were sent from each of our stockpile locations to the damaged business offices, where the positive results of our efforts are now evident. In the future, we plan to reexamine our disaster prevention measures at each business office, revise our manuals, and rethink our anticipated earthquake risks as we further strengthen our disaster preparedness.
To deal with information security risks, we have carried out a variety of initiatives such as ensuring thorough information security education, including the continued use of e-learning, which began in the 2009 fiscal year; responding to information security issues brought to light by compliance awareness surveys; and upgrading our framework for managing important data and personal information. We also relocated our servers and upgraded our backup system to ensure that the operational level of services will not be significantly compromised during a disaster.