Risk Management
To avoid losing corporate value and the trust of the public, the azbil Group strives to accurately understand and minimize risk factors having the potential for serious impact on operations.
Risk Management System
The azbil Group General Risk Management Committee, composed of department managers, conducts an exhaustive investigation to identify risks that may have a significant impact on operations. Following this, the azbil Group General Risk Committee, headed by the corporate executive in charge of risk management, compiles a list of risks deemed important to the azbil Group that are especially in need of action, which are then deliberated on and confirmed by the Board of Directors. The Management Meeting and the azbil Group CSR Promotion Committee then set up systems with a PDCA cycle as a countermeasure for each kind of major risk, monitor the progress of the countermeasures, and report on outcomes to the Board of Directors. In April 2022, we also established the CSR and Risk Management Department to enhance our risk management.
In addition to the aforementioned systems, the Board of Directors of each Group company determines its own important risks and implements measures to counteract them.
The azbil Group’s Risk Management
To minimize risk from possible future events, we carefully review risks every year, identify the major risks, and monitor the progress in strengthening of countermeasures using the PDCA cycle.
We have also established a crisis management response system to help us respond to crises and emergencies, with the aim of minimizing the impact of any crisis that occurs. We are also building and strengthening our response system for major emergencies. Furthermore, we have formulated many kinds of detailed BCPs as we continuously strive to improve our systems as part of our business continuity management.
Business-Related and Other Risks
Risks that may affect the business results and financial position of the azbil Group are summarized below. These risks are deliberated on by the azbil Group General Risk Committee and the Board of Directors, and are managed comprehensively. In addition to this overall management, related departments also take measures to mitigate risk.Information in the table that pertains to the future was judged by the Group to be valid as of the end of FY2021. The risks that are listed are described in our 100th Securities Report under “Business-Related and Other Risks.” Please refer to the securities report for details on how each potential risk was addressed and evaluated.
Business-Related and Other Risks
Category | Risk Awareness | Countermeasures and Risk Mitigation |
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Business environment |
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Growth in competitive environments |
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Product quality |
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Global operations |
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Securing and developing human resources |
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Information leaks and IT security |
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Environment, climate change, natural disasters |
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Compliance |
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Changes in how employees work |
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Difficulties in procuring parts |
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Improving Disaster Prevention Capabilities and Business Continuity Plan (BCP)

The azbil Group takes various disaster prevention measures to minimize potential damage to its operations and improve its disaster response capabilities. For example, we regularly verify the earthquake resistance levels of our buildings and work to strengthen them. We also conduct hazard inspections, stockpile inspections, and disaster prevention drills, and we are developing an emergency communication infrastructure. Through our BCP, we aim to fulfill our responsibility to society by ensuring that the survival of the entire azbil Group is not threatened, while also preventing serious suspensions and delays in operations, with a top priority of guaranteeing the safety of human life. Our basic policy is to normalize corporate activities without causing delays to the restoration of society. We have created various disaster scenarios, based on which we analyze the current situation and formulate countermeasures for each business, production, and administrative function while conducting relevant training. We have also secured offices, restored important systems and networks, and performed financial simulations. With respect to the COVID-19 pandemic, we are making Group-wide responses based on plans that we have prepared so far, with a top priority on ensuring the safety and security of customers and employees. We will also continue working to improve our BCP responses.
Reinforcing Our Information Management System
We are using IT systems in various ways, such as enhancing the environments in which employees can work safely from external locations. Our aim is to maintain high levels of safety and security even for employees working from home.In addition, we conduct information security training annually for all Group employees. We also address information management issues identified via our compliance awareness survey, and we have a system to ensure proper compliance with laws and regulations on the protection of important information, including personal information, in each country/region. In these and other ways, we are working to improve and strengthen our Group-wide information management system.