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 2019.

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

Our sites outside Japan have been working to create a comprehensive risk management manual since 2017. We aim to ensure the safety of our employees and company assets by anticipating potential risks within the company such as the risks of environmental contamination from chemical substances at our factories, and sharing preventative measures and risk minimization measures internally.
For the past 5 years, each site has been preparing countermeasures that treat hazards as highly virulent infectious diseases. By implementing these measures in response to the spread of the COVID-19, we have been able to reduce the risk of infection to employees at the company. Since the outbreak is not yet at an end and new infections may occur, in FY 2020 we plan to review the current measures through peer review* among sites and improve the manual to include more actionable codes of conduct.

* Peer review: Mutual evaluation and review between personnel of the same industry at different sites.