Supplementary Explanations

Large scale natural disasters like earthquakes and hurricanes, and events such as terrorism, riots, infectious diseases, and accidents, may have a significant effect on business continuity. Business continuity plans (BCPs) must be drafted to ensure appropriate preparations, rapid resumption of production, and minimization of supply chain impact in case such events occur.
Examples of countermeasures include: building of an emergency contact system and installing safety facilities to secure employee safety, securing substitute work areas and standardizing repair and recovery procedures for production line recovery plans, accumulating spare parts and machinery, forming contracts with substitute suppliers, securing a variety of supply sources, and reinforcing inventory management.
As economic and social conditions change, so do the risks that need to be managed. Therefore, it is important to periodically review and prepare for these risks.