The MCHC Group has isolated the following categories of risks as warranting priority measures. After identification of such risks, we take measures to avoid their incidence or to minimize the resulting damage if the risks materialize.
In order to entrench compliance within the Group, we have compiled rules and standards, such as the MCHC Group Charter of Corporate Behavior, published a compliance guidebook, provided education, training and seminars on compliance, performed audits, and opened a compliance hotline. At overseas Group companies as well, we endeavor to strengthen compliance by compiling rules and codes of conduct in accordance with the laws, regulations and social norms of each country.
Each operating site endeavors to prevent facility-related accidents by ensuring the soundness of facilities and equipment and proper operation of them through their appropriate maintenance as well as extensive education and training of operators. If an accident occurs, the Group works to avoid recurrence by analyzing the cause, taking measures, and verifying their effectiveness through inspections or maintenance patrols. Moreover, the Group works to prevent accidents by applying these measures laterally to similar facilities and equipment or operations. Learning lessons from past large-scale disasters, MCHC has made further improvements to its business continuity plan (BCP). In the event that it becomes impossible to continue operations at the MCHC head office (Tokyo), we have plans for transferring head office functions to a temporary backup site with the aim of minimizing damage and ensuring business continuity in disaster situations. We are also examining ways to maintain the procurement of raw materials and our responsibility of supplying products by procurement from multiple suppliers, as part of our BCP.
MCHC has formulated an Information Security Policy in order to protect its information systems and assets from internal and external threats, with the aim of maintaining and improving corporate value. Based on this policy, we established the Information Security Committee and charged it with reinforcing the management of information security at our business sites inside and outside Japan. We regularly conduct educational and training sessions for all employees including those overseas on our policy to ensure employee awareness and compliance with it. For example, based on the “Cyber Security Management Guidelines” formulated by the Ministry of Economy, Trade and Industry (METI), we are striving to collect the latest information and establish an emergency response system, in cooperation with outside institutions, so as to prevent problem occurrence as much as possible and minimize damage in case of an occurrence. We are also working to increase employee awareness about information security by drilling them with e-mails made to look like targeted e-mail attacks and arranging e-learning opportunities.
Becoming more active overseas business, we are taking various initiatives to reduce risks related to the particular laws, regulations and systems of the country in which we do business. For example, in the business domain of polyolefin used for food packaging materials, if the raw materials did not conform with the regulations of an export destination country, significant risks of not being able to sell or losing trust of customers could occur. In order to prevent such a case from occurring, we have adopted rules on confirmation procedures and have made them known in all companies and we thoroughly put them into practice.
To prevent lapses in awareness of serious risks, including the above, we created a Global Risk Map collecting publicly available case studies of significant problems and legal violations in each country. This is distributed to Group companies overseas. In addition, we established a communication system for local companies, the head offices of operating companies, and MCHC to use in the event of political turmoil or other disruptions in the relevant country.