Risk Management

Risk Management Policy

We prevent the occurrence of potential risks and respond to apparent risks revolving around the business of the Tokyo Seimitsu Group.

Risk management policy

  1. The Tokyo Seimitsu Group strives to prevent the occurrence of potential risks. If any risk has become apparent, President & CEO and all employees work in unison to take prompt and prudent action.
  2. If any risk has become apparent, priority is given to protection and saving of human life.

Risk items and content

The following risks are assumed to be the risks revolving around the business.

  1. Risks of occurrence of natural disasters and sudden events (earthquake, fire, storm and flood damage, terrorism, etc.)
  2. Risks caused by economic and financial market trends (business trends, fluctuation of currency rates, etc.)
  3. Risks caused by changes in customer investment trends (changes in semiconductor industry, automotive industry, etc.)
  4. Risks caused by competitor and industry trends (price competition, development competition, intellectual property rights, etc.)
  5. Risks concerning public regulations, policies and taxation (country risk, etc.)
  6. Risks concerning human resources (industrial accident, unexpected incident and accident, etc.)
  7. Risks concerning capital providers (changes in share ownership, etc.)
  8. Risks concerning IT system (IT system failure, etc.)
  9. Risks concerning the quality of products and services
  10. Other risks associated with business execution

Risk Management Structure

The Tokyo Seimitsu Group has established a Risk Management Committee, chaired by the President and CEO and composed of officers in charge of Group companies and executive officers appointed by the chairperson.

The committee requests reports on the prevention of potential risks from risk management divisions, makes reports to the Board of Directors as necessary, and, in the event that a risk materializes, immediately establishes a Risk Task Force.

Business Continuity Plan(BCP *1

Tokyo Seimitsu conducts reviews and adjustment of BCPs and plant BCPs, in accordance with our business continuity policy.

In fiscal year 2020, we continued from the previous year in conducting damage estimation for scenarios of threats at our companies and plants, and fragility analysis of our current countermeasures. We carried out earthquake-proof reinforcement, continuity measures for product supply and service provision, and review of manuals in practical aspects, among other actions. For our head office network, we conducted disaster recovery testing to check the disaster recovery environment and the preservation of institutional data.

While enforcing COVID-19 infection prevention measures, we reaffirmed the operations through drills addressing the basics of evacuation and disaster prevention, and conducted night-time evacuation measures and reviews of stockpiles. For BCPs at Group companies in Japan, we engaged in further reinforcement of our data backup structure and entrenchment of the alternative production system that we operated through the previous fiscal year.

*1BCP:Business Continuity Plan

Safety Confirmation System

The Tokyo Seimitsu Group has introduced a Safety Confirmation System for confirming people's safety via mobile phones and smartphones following a disaster or accident. We explain the system to new employees and enforce early registration. We carry out operation drills twice a year to confirm the system's effectiveness and to raise awareness of the system among all employees, and use the drill results to perform reviews and disseminate information. In the second half of fiscal year 2020, we conducted drills by division for the first time, with the aim of disseminating information on the monitoring role performed by staff who confirm safety.

Measures Against COVID-19

As actions to prevent the spread of the COVID-19 infection, we reduced the infection risk for employees and made improvements to the workplace environment. In response to the introduction of measures and policy changes by the government, we appropriately reviewed and revised our guidelines for response to COVID-19 patients and their close contacts, worked to prevent infection, and maintained our structure for responding to cases of infection.

Measures to Reduce Infection Risks

  • Working from home
  • Distribution of face masks to be used during work and commuting
  • Daily checking and reporting of body temperature
  • Encouragement of taking leave when in poor physical condition
  • Restraint from domestic and overseas business trips

Improvement of Workplace Environment

  • Placement of alcohol-based disinfectants, etc.
  • Deployment of non-contact thermometers
  • Hand-washing
  • Enforcement of gargling and other sanitary practices
  • Regular indoor ventilation
  • Review of cafeteria operation/meeting operation (reduction in number of participants, use of web meeting, etc.)
  • Distancing through change of workplace layouts
  • Distancing through change of workplace layouts
Example of infection prevention measures (employee cafeteria)
Example of infection prevention measures (employee cafeteria)
Example of infection prevention measures (employee cafeteria)

Implementation of Workplace Vaccinations

Workplace vaccination
Workplace vaccination

In line with government policy on COVID-19 vaccinations in the workplace, Tokyo Seimitsu made the decision to carry out workplace vaccinations at the Hachioji Plant from July 2021. Within Tokyo Seimitsu and Group companies, we conducted vaccinations for employees at the Hachioji Plant, including temporary employees. We are moving forward with plans to extend vaccinations to family members and to neighboring companies with which we have cooperative relationships. The vaccinations are voluntary, and we use application procedures via our in-house web-based system to avoid forcing vaccinations on unwilling persons.

If adverse reactions occur on day of vaccination or the following day, we apply special paid leave so as to avoid unreasonable work. As the government has requested the continuation of preventive measures even after vaccination, we call on employees to steadily continue the practice of measures.

Information Security

The involvement of digital information in our business processes has increased sharply in recent years amid the onrushing wave of digital transformation. We recognize that heightening the effectiveness of information security while balancing data protection against the promotion of innovation is a vital issue.

In response to growing information security risks such as the ransomware and information leak incidents reported in recent years, in fiscal year 2020 we reviewed our information security structure and strengthened our initiatives.

While maintaining the mindset of cooperation in conventional cross-organizational management, we established IT subcommittees and audit subcommittees under the Information Security Committee chaired by a Company officer, to create a structure for solving specialized issues that must be addressed company-wide and for conducting audits of activities.

In group companies, we assigned officers in charge of security, information security managers, and information security subcommittees that serve as working units, performed detailed management and problem solving tailored to companies' particulars, and further strengthened activities to protect information security assets.

Information security structure

*2ISMS:Information Security Management System