Header logo01

Corporate Governance

Risk Management

Corporate GovernanceRisk Management

Public Relations Section, DFF Inc.

Basic Approach

Policy
Basic Approach

With regard to business activities in the near future, we must precisely understand various business risks that may manifest in the future and ensure that we provide for them in order to implement our business strategy and increase corporate value in unstable global circumstances with increasing complexity and lack of clarity. With this awareness, we consider that it is necessary for each business unit of the Meiden Group to increase their sensitivity when considering business risks, and establish their own PDCA risk management systems. Furthermore, we aim to create a system that is capable of responding to constant change and all risks by creating a risk management system for all companies that incorporates Business Continuity Management (BCM) in order to respond to risks to the business continuity of the entire Group.

Public Relations Section, DFF Inc.

Initiatives to Establish a Risk Management System

Organization and Initiatives
Initiatives to Establish a Risk Management System

At the Meiden Group, comprehensive risk management has been conducted since fiscal 2018 for each business unit using Control Self Assessment (CSA) at each domestic works and affiliate. Through this method, each business unit defines future uncertainties that may impede the fulfillment of business plans as risks from a wide range of factors such as external environment and business processes and devises and implements measures to respond to these risks according to an evaluation of the severity of each risk. In addition, each business unit re-evaluates the success of this series of control activities in their own business unit, which will lead to further ongoing control activities.
With regard to internal auditing of the business risks of each business unit, we ensure that risk management is conducted through top-down style local interviews with pre-prepared questions conducted by the internal auditing division and the aforementioned bottom-up style Control Self Assessment (CSA) conducted by each business unit.

Public Relations Section, DFF Inc.

Crisis Management System

Organization
Crisis Management System

Operation of the Enterprise Crisis Management Committee

The Meiden Group has a unified risk management system and we have established a Enterprise Crisis Management Committee (CMC), chaired by the President, with the Chief Crisis Officer (director and senior managing executive officer, Nobutoshi Ohashi) serving as the Deputy Chairman and members comprising directors (excluding outside directors), in order to respond to severe cross-organizational crises.
The CMC works with each working group committee (WGC) and meets, as a rule, at least once a year to maintain countermeasures to critical crises threatening the business continuity. They perform risk surveys to discover new crises and study measures against them.

Role of the Enterprise Crisis Management Committee

1. Establishing basic policies on major and cross organizational crises
2. Encouraging measures to prevent crises before they happen
3. Deciding company policies on the crises that are actually happening

Furthermore, from fiscal 2018, we have established the BCM Committee as a specialist committee to formulate and implement business continuity plans (BCPs), and enhance the Group’s business continuity initiatives.

Enterprise Crisis Management Committee

Enterprise Crisis Management Committee
Public Relations Section, DFF Inc.

Business Continuity Plan (BCP)

Initiatives
Business Continuity Plan (BCP)

Formulation of Business Continuity Plan (BCPs)

We conducted the following initiatives to promote formulation of BCPs as a Group-wide project in fiscal 2018.
1. Conducting BCP introduction education: We conducted BCP introduction education for the heads of each business unit, disseminated information about the importance of BCPs and announced the commencement of formulation of a Group-wide BCP.
2. Establishing and operating the BCM Committee: We established the BCM Committee as the final decision-making body with regard to the Meiden Group’s business continuity. It comprises members of managing executive officer level and above and it is independent from the Enterprise Crisis Management Committee.
In fiscal 2018, the Committee convened for the second time, and adopted (a) the Meiden Group BCM Promotion System and (b) the Business Continuity Plan (BCP) Basic Policy. Furthermore, in order to promote implementation, the Corporate BCP Promotion Committee and BCP promotion committees of each business were created to enhance company-wide promotion.

BCM Promotion System

BCM Promotion System

Increasing Effectiveness of BCPs

Based on resolutions of the BCM committee, we conducted the following initiatives to enhance disaster response measures.
1. Distributing disaster response cards to all employees (including employees of Group companies) and formulating a natural disaster response manual (for the disaster response headquarters)
2. Improving functionality (renewal) of the safety confirmation system and ensuring implementation
3. Restructuring the corporate disaster response headquarters and conducting training (first)

Corporate disaster response headquarters training

Corporate disaster response headquarters training

Corporate disaster response headquarters training

 

New disaster response card

New disaster response card

Public Relations Section, DFF Inc.

Strengthening Information Security Management

Policy, Organization, and Initiatives
Strengthening Information Security Management

The Meiden Group understands that ensuring the security of the information we handle is a most critical issue. We therefore protect information assets from disasters, accidents, criminal acts, errors, and other threats. We also maintain and enhance information management to prevent leaks, tampering, or theft.

Information Security Control System

Information Security Control System

Initiatives

In fiscal 2019, we are continuing to implement initiatives to reinforce information security for the entire Meiden Group.

1 Analysis of Incidents and Countermeasures for Each Cause

We conducted analyses and implemented measures to cover both aspects of hardware/software and human factors: the former includes data protection from unauthorized logins, virus infections from suspicious emails, targeted email attacks, etc. as well as and the latter theft, loss, or mishandling of information devices.

2 Sustainable Information Security Measures

We had previously conducted initiatives based on “defense,” but we are now working to implement sustainable security measures in the areas of “prediction,” “defense,” “detection,” and “response.”
Since introducing the Security Operation Center (SOC) in fiscal 2017 in order to enhance detection, we promoted the establishment of an internal system to speed up responding to incidents in order to enhance response. Furthermore, we hold study meetings and explanatory sessions for suppliers as a first step to enhance supply chain security.
In fiscal 2019, we plan to introduce next-generation antivirus software, strengthen hardware and software measures, and continue to conduct human measures, such as information security education and suspicious email drills. We are continuously rolling out both proactive and reactive measures basis for information security on a group-wide basis.

Public Relations Section, DFF Inc.