Chiyoda Group promotes the risk management activities and planning/ implementing Corporate Strategy as the robust wheels to support and drive maintaining/creating Corporate Value. Chiyoda Group ensures to properly disclose its business risk information to the stakeholders so as to increase transparency, to mitigate those risks by taking proactive countermeasures, then to achieve the business target. That is exactly the aim of CORPORATE RISK MANAGEMENT POLICY. The purposes and action guidelines of CORPORATE RISK MANAGEMENT POLICY are defined.
To manage individual project risk and profitability, the Chiyoda Group is increasing management transparency by implementing a double-check/internal control function in administration divisions in addition to a self-auditing system in project operation divisions. Professional auditing teams from administration divisions have effectively implemented project audits to verify the validity of the project execution plans formulated by the project operation divisions.
The Group has established risk management and crisis management systems to deal with significant risks and has appointed risk managers and crisis managers. We constantly work to prevent the occurrence of problems. In the event that a problem occurs, we will establish a Crisis Control Center that minimizes damage by mobilizing the entire workforce.
Chiyoda Corporation maps out a risk management plan in accordance with the Corporate Risk Management Policy established in 2015. We identify the risks we should prioritize and carry out a plan-do-check-act (PDCA) cycle on the identified risks.
To identify the risks to be prioritized, a risk survey has been annually conducted on management members, including executives, by the Corporate Risk Management Division. They assess about 100 risks on a risk questionnaire from three perspectives, impact, frequency and risk management. The questionnaire listed all risks to the Chiyoda Group possibly conceived in various aspects of its business, such as management, project implementation, natural disaster, IT, information security, and compliance including corruption, human rights and harassment.
The departments in charge, the Corporate Risk Management Division and other relevant departments will work closely together to avoid those identified risks or minimize the effects if the crises should ever arise.
The Chiyoda Group has been coping with various risks such as fires, earthquakes, disease, information leakage, compliance violation and terrorist attacks, in addition to its project execution risks in the core business. The Chiyoda Group established its Group BCP and BCM (Business Continuity Management), anticipating various risks that would disrupt its business. The BCP provides the direction and course of action in order to avoid such risks, or recover quickly even if such a disruption may occur, and was known to all employees. When a disaster including a fire/an earthquake or any epidemic, terrorism/turmoil, occurs, and if the impact on the Group is anticipated to be large enough to disrupt its Group business/operation, the Group immediately declares the imposition of BCP.
Then, based on the basic philosophy of “Employees’ safety First”, the Group makes utmost efforts to continue its minimally required important business and to make a quick return to normal operation as well as to contribute to the restoration of communities affected by such a disaster.
In FY 2015, we conducted a BCP drill jointly with our domestic subsidiaries; we conducted a real-time simulation drill* assuming that an inland earthquake measuring 6 on the Japanese scale of seven hit the Tokyo Metropolitan area. All the participants actively gathered information, sorted it out and took measures accordingly.
The results of the drill will be reflected in the BCM. We will analyze the problems found during the drill. Based on the analysis, we will revise the BCP to enhance its effectiveness. The BCP drill will be held annually in the future
* Real-time simulation drill: The participants receive information, or reports on damage,
and inquiries chronologically about the events likely to occur within several days from a disaster.
The participants sort out a wide variety of information flowing in simultaneously.
Based on the information, the participants make decisions and give instructions.