Risk Management System
Four Committees set up for four types of risks
We need to recognize diverse management risks, prepare for them, and fulfill our corporate social responsibility when the risks become reality. To this end, we have established our own system for managing crises and risks. Specifically, we have established four Committees for responding to four different types of risks: risks in ship operations, risks of disasters, risks concerning compliance, and other risks related to management. We have also set up the Crisis Management Committee as an organization to unify the four Committees and facilitate overall risk management.
Risk Management System
See “Safety in Navigation and Cargo Operations” for information regarding management systems related to “Safety in Navigation and Cargo Operations”.
Responding to Management Risks
Risks are not limited to those concerning ship operations, major disasters, or compliance. There are many other risks, including terrorism, threats from antisocial forces, harmful rumors, fluctuations in exchange/interest rates, fluctuations in fuel oil price, changes to the tax systems or economic policies of major trading nations (areas), including North America, Europe, China and Japan. The adoption of protectionist trade policies is also among the risks we confront.
Risk of threats from antisocial forces
Our Charter of Conduct contains a declaration of our resolve to confront anti-social forces with a robust attitude. In the event of a specific attack, we will respond in collaboration with relevant authorities and our corporate lawyers.
Risk of threats from terrorism
To deal with the risk of terrorism, we participate in the C-TPAT *1 program, a U.S. Customs’ program aimed at preventing terrorism. The measures we take under this program include strict identification of people who visit ships, the appropriate installation of fences and lights at self-managed terminals, and measures for ensuring information security.
Risk of economic change
Concerning fluctuations in exchange rates and changes in economic policies of major trading nations (areas), we constantly monitor the trends and hedge against risks appropriately. If our operations are likely to be affected by the risks, our Management Risk Committee will take preventive action and respond appropriately when an impact actually occurs.
We have set up information management and information security regulations in which we stipulate all the fundamental principles concerning management and security of all information assets handled in our business activities. We ensure information is secure through various measures, including security log monitoring and antivirus and anti-spam measures.
*1C-TPAT (Customs Trade Partnership Against Terrorism): A customs-trade initiative aimed at building cooperative relationships to prevent terrorism and ensure security. U.S. Customs encourages parties involved in trade with the United States (shipping lines, port operators, inland transporters, manufacturers, cargo owners, warehousemen, and others) to participate in C-TPAT.
Responding to Large-scale Disasters
Establishing a BCP and Data Backup System, etc.
We have established BCPs (Business Continuity Plans) for two different types of disasters: an inland earthquake in the Tokyo metropolitan area and a pandemic involving a highly virulent new influenza. We give top priority to the lives of people, and aim to continue important operations as an entity that is part of the social infrastructure by transferring operations to our domestic and overseas branches and subsidiaries or by shifting to telecommuting. Also, to avoid the loss of data in a disaster, we have set up a system in which backup data can be stored remotely.
The Disaster Response Committee devised strategies for improvement based on our experiences in the Great East Japan Earthquake and held disaster response drills.
Formulating a Pandemic Influenza Response Operation Plan.
Our Company is a designated public institution specified in the Act on Special Measures for Preparedness and Response against Pandemic Influenza and New Infectious Diseases (Act No.31 of 2012). The Act requests designated public institutions to take appropriate measures to prevent disruption to the operation of the business, and to continue the business even in an event of pandemic influenza outbreak to minimize its effect on the people’s living and national economy.
The Act also requests designated public institutions to formulate a pandemic influenza preparedness and response operation plan for their business, to report the plan to the Prime Minister of Japan, and to publish the outline of the plan.
In accordance with this provision of the Act our Company has formulated a “Pandemic Influenza Response Operation Plan”. The outline is shown below.