The Yokogawa Group has in place a risk management system to control the uncertainty affecting the corporate value, as well as a crisis management system with which to respond promptly to any event that could have material impact on the company's operations.
We define uncertainty that might affect the group's corporate value as risk, and categorize and manage this in terms of business opportunities, and compliance and crisis events.
Risk Management System
In order to realize effective risk management in the group, we have established the risk management committee with our CEO as Chairman, who is responsible for the supervision of risk management. The risk management committee selects critical risks (priority management risks) which should be managed as priorities, and regularly checks the progress of activities.
As part of independent risk management activities, each organization of the group clarifies and assesses risks, and plans and implements countermeasures. Each organization has a risk manager and has established a network for the group's global risk management.
We assess severity of "risks in business opportunities" such as external environment and strategies, and "risks in compliance and crisis events" such as quality, environment, safety and hygiene, labor, corporate ethics (embezzlement, window-dressing, data falsification, bribery, harassment, etc.), and risk management from the viewpoint of influence levels and incidence. When we assess impacts of the risks, we take into account financial and human aspects as well as social and environmental impacts.
Internal Audit Department assesses the effectiveness of the group's risk management process and reports important matters to the board of directors and the Audit & Supervisory Board members.
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.
Our control business, which is a core segment of the Company, is deeply tied to social infrastructures such as electricity, gas, water and sewerage. To continue with our business activities as much as possible in the event of a disaster and quickly help maintain and restore social infrastructure, we developed the "Yokogawa Group Business Continuity Plan (BCP)." We also have developed response plan and guideline which assume the specific risks such as huge earthquake or epidemic of contagious diseases. We have collaborated with each group company worldwide to improve the plans.
Moreover, in order to enhance the effectiveness of the formulated BCP, regular training is provided by members of the risk management organization, including upper management, to track down problems, and Business Continuity Management (BCM) activities, which are aimed for continuous improvement of BCP, are carried out. We have also introduced a system to promptly check employee safety and provide regular training to enhance the skill of workers in case of emergency. These activities were utilized for the initial response to the successive earthquakes in Kumamoto and central Tottori prefectures in 2016.
Our company will continue to review BCP contents to respond to disaster risks.
To protect its employees working all over the world from crises (such as terrorism, riots, kidnappings, and crimes in general), Yokogawa gathers information on risks in each region of the world and directly sends alarm information to employees working in that area. Yokogawa believes it is important for all the employees to understand the situation of the area they deal with in their daily work, it periodically delivers to its employees International Security News. Moreover, it also provides training and seminars to counter terrorism when employees are abroad and to acquire knowledge to protect oneself from crises.
Yokogawa will take and improve various measures every day to ensure the safety of its employees.