The respective departments and various committees responsible for risks engage in activities to promote their respective specialized areas of risk management. The following describes some of those measures.
Managing Business Law Violation Risk (Legal Department/Official Approval Committee)
In some cases, production, sales, or other operation activities require obtaining legal or government approval through specific screening procedures. Referred to as permits and licenses, the Shimadzu Group currently has permits and licenses for about 90 laws and regulations, such as Japan's Pharmaceutical Affairs Law, Measurement Act, Aircraft Manufacturing Industry Act, and Construction Business Act. Such permits and licenses not only must be obtained appropriately, but also maintained in compliance with the applicable laws, such as by obtaining qualified personnel, satisfying permit/license requirements, and following the renewal process. Therefore, to ensure we understand and inspect the legal and regulatory compliance status of all Shimadzu Group companies, the Official Approval Committee meets periodically to review our compliance status. Also, any concerns identified regarding permits and licenses are promptly and appropriately addressed through cooperation between the applicable company, relevant departments, and the Official Approval Committee.
Managing Natural Disaster Risk
Shimadzu has established regulations and manuals that specify instructions for initial response to major earthquakes, storms, flooding, or other natural disasters that cause major damage to business operations, and implementing routine countermeasures for such disasters, such as disaster training and workplace safety measures. In addition, training and other measures are regularly implemented based on the content of those regulations and manuals.
Introducing a Security Confirmation System
A system for each employee to report their safety status using their mobile phone in the event of a large earthquake or other major disaster was introduced at the Head Office and Group companies in Japan, with training conducted periodically. By smoothly confirming the safety of employees, initial response can be provided more quickly and appropriately.
Conducting Disaster Training
At the Head Office, mass evacuation training assuming an earthquake is conducted periodically to firmly instill initial actions and increase awareness of risk management. In addition, periodic hands-on fire extinguishing training is conducted using simulated fire extinguishers and fire hydrants that actually discharge water. Desktop initial response training is also conducted for disaster response task forces.
Stocking Disaster Provisions
Food, blankets, temporary toilets, and other supplies for daily life are stocked at the Head Office. Disaster rescue supplies, such as pickaxes and hydraulic jacks, and supplies for supporting service locations, such as portable gas cans, are also stocked.
Business Continuity Plan / BCP
Shimadzu considers the occurrence of a major earthquake a major corporate risk. Therefore, we have established a business continuity plan for ensuring the safety of personnel, minimizing damage, recovering quickly, and fulfilling our responsibility to supply products to our customers.
In an emergency, a head office task force, headed by the President, to coordinate the Group companies and five subordinate divisional task forces, headed by respective division General Managers, to coordinate each division are established for leading business continuity and recovery measures.
Preparation of Recovery Plan
A business recovery plan is prepared for each division. A recovery plan is prepared separately for buildings, utilities, production lines, procurement, service, and other functions, to ensure a quick recovery of business operations.