Risk Management

Ｗe are conducting a risk survey for all domestic and foreign affiliates and for the headquarters in the Yokogawa Group. The survey is conducted as a self-assessment of the state of risk extraction and risk management, using a risk survey sheet based on the book,　Learn Risk Management from Leading Companies -- Practice Text, issued　by METI. "Risk" is defined as something that could affect the management of the Yokogawa Group. We further define risks that occurred in the past or is currently occurring as "explicit risks", and foreseeable risks that have not yet surfaced as "implicit risks".

• METI: the Ministry of Economy, Trade and Industry

The risks extracted from the survey were classified into two categories, "corporate risks" and "business risks". "Corporate risks" deal with the Yokogawa Group’s internal control systems, and is handled from 10 perspectives (e.g. quality, environment-health and safety, and information security, etc.) "Business risks" deal with our decision making. They are classified into “1. risks relating to the external environment”, “2. risks relating to achieving business plan”, “3. risks relating to partnerships with other companies”, and “4. risks relating to human resources (recruiting, training, and utilization, etc.)”.

We use the PDCA cycle management to avoid, reduce, transfer and retain risks. The risk map is used to analyze situations in risk management.

We reported the results of the risk survey and the risk management at the board and management meetings. We are continuously improving the risks that are not well managed, and are also strengthening our risk management. Some of the examples for strengthening risk management include "counter-measures against the new flu pandemic”, "strengthening information security", and "business continuity management in preparation for large earthquakes".

In the event of a disaster, accident, or incident that can seriously impact the Yokogawa Group companies’ management and/or the lives of their officers and employees, the concerned organization must take prompt action to minimize the damage by gathering information and reporting back to the Group’s top management.

To address this issue, we have created the “Guidelines for Reporting Disasters, Accidents, and Incidents”. These guidelines have been prepared to advise all departments and affiliates in the Yokogawa Group on the reporting procedures to follow in the event of such disasters.