Risk Management

Group-Wide Risk Management Efforts

At SII, the CSR Committee with the President serving as the chairman plays a central role in promoting across-the-board risk management. The committee aggregates information on various types of risks including potential ones in advance and identifies risks to be controlled every fiscal year. The risks are evaluated and sorted according to their severity and frequency, and the progress of relevant countermeasures is checked every quarter. Critical risks of the fiscal year are reported to the Board of Directors on a regular basis. The CSR Committee met six times in FY 2018.

Also, the status that could be business risks is managed using KPI, Key Performance Indicator, and monitored at the management meetings on a regular basis.

In preparation for large scale disasters, which represent one of the risks, we have provided each employee with a helmet. Also, in anticipation that it may be difficult for employees to return home due to traffic restrictions, etc., we have systematically prepared water, food, emergency blankets, and other emergency supplies.

Risk Management in Continuing Business

SII manufacturing sites conduct risk management to prevent production interruption, aiming to continually provide products even when a risk arises.
The examples of our wide-ranging risk management are operational improvements at the local-working level and radical improvement which requires equipment investment.

10-Minute Rule and 2-Hour Rule

SII launched the reporting rule in the event of crisis called 10-Minute Rule and 2-Hour Rule in 2003, describing that the SII Group employees must inform the president promptly once they find any events that may be associated with actual potential risks.
This rule requires that any event with potential corporate risk must be informed to the President of SII within ten minutes if it occurs in Japan, or within two hours if it occurs outside Japan. Since speedy reporting is given the first priority, we welcome all reports even though the initial content is not sufficient.

Preparation of comprehensive risk management manuals for sites outside Japan

Since 2017, we have been engaged in producing comprehensive risk management manuals for sites outside Japan. By anticipating potential risks within the company, such as the risk of environmental pollution from chemical substances at factories, and internally sharing strategies to prevent or minimize those risks, we aim to ensure the safety of company personnel and property. By the end of FY 2018, the creation of such manuals had been completed at four sites, and in FY 2019 we continue to produce manuals for sites in East Asia and Southeast Asia. While positioning the thorough dissemination of this information among all personnel as a mandatory requirement, from FY 2019, we also plan to verify this through peer auditing* among sites.
Additionally, with the aim of preventing compliance violations by clarifying and standardizing the company rules at sites outside Japan and making all personnel aware of those rules, we have been carrying out development of regulations since 2017.

* Peer auditing: Mutual auditing between personnel of the same industry at different sites.