SII Group Management

Risk Management

Group-Wide Risk Management Efforts

At SII, the head office members take central roles in the Risk Management Committee to promote the across-the-board risk management. The Committee identifies and shares a wide range of risks to the functions of the head office and each division respectively in order to promote activities. Through reports at management meetings and regular reviews carried out by the senior management, we assure the implementation of PDCA (Plan-Do-Check-Act) for risk management in full coordination with management.

Upon occurrence of a major risk such as a large-scale disaster, it could be difficult for employees to go home at least temporarily due to close down of transportation. Japan sites have been preparing water, food, bedding and other emergency supplies. They will be effectively distributed to all SII Group sites.

Risk Management to Continue Business

At SII production facilities, we manage risks to prevent production interruption, aiming to continuously offer products even in an emergency situation. The examples of our deliberate risk management are operational improvements at the local-working level, fundamental improvement which requires equipment investment, and adoption of seismic isolation in new factory constructions.

"10-Minute Rule & 2-Hour Rule"

In case of an emergency, the "10-Minute Rule & 2-Hour Rule" promotes rapid communication between employees and top-level management. This rule requires that any event with potential corporate risk must be notified to the President within ten minutes if it occurs in the head office, or within two hours if it occurs outside the head office. Since speedy reporting is given the first priority, we welcome all reports even though the initial content is not sufficient.

Natural Disaster Response

● The flooding that occurred in Thailand damaged Seiko Instruments (Thailand) Ltd., our manufacturing site for HDD components. We set up a headquarters task force before the inundation and deployed activities to minimize the damage, but their operations were suspended and a part of the product distribution was disrupted. With the lessons we learned from the disaster, we will aspire to reinforce our ability to stay in business.

● In regard to the power constraints after the Great East Japan Earthquake, we were able to overcome the tough situation by introducing a joint scheme created by the SII Group and taking electricity saving measures.