The CITIZEN Group assesses, analyzes, and evaluates risk and engages in activities to appropriately manage risk based on the results of these efforts, in order to achieve Group-wide business targets and ensure sound and sustainable development,
Group Risk Management Committee
The CITIZEN Group has established the Group Risk Management Committee, with the president of CITIZEN WATCH serving as the committee chairman, to peruse the establishment, operation, and monitoring of risk management Group-wide.
In addition, the CITIZEN Group has selected a risk management officers and responsible department at its Head Office to manage corresponding specific risks that the Group faces. The Group has also set up committees for each major risk theme in an effort to support Group-wide risk management activities.
Response to Crisis
In preparation for a major crisis (incidents/accidents, terrorism, natural disasters, scandal, etc.) that could occur in various areas of the world, The CITIZEN Group are working on constructing a global crisis management system. To swiftly and accurately gather, determine, and disclose crisis information, we are laying the groundwork to minimize impact on business and stakeholders by clarifying standards of reporting to the Head Office, establishing an emergency recognition conference to make crucial decisions on matters, and setting up a crisis management headquarters that reviews specific measures.
Overseas Safety Management System
The CITIZEN Group promotes safety management for employees overseas.
There increase in numbers of employees who work abroad, and unforeseen circumstances such as terrorism, political unrest, natural disasters, and infectious diseases have occurred around the world. Any of these circumstances could have a significant adverse impact on our business operations.
We have put in place a system in which the Overseas Safety Management Office is constantly aware of the location of staff on business trips or who resides overseas. In the event of unexpected incidents or accidents, the office can confirm staff safety and, if necessary, provide suitable instructions.
The office also monitors overseas risk information on a daily basis and actively provides the information to staff on business trips or who reside overseas.
Business Continuity Plan (BCP) for Disaster
To prepare for an event where management resources are significantly impacted by a large-scale natural disaster and business must be halted or suspended, or an event in which the possibility of business suspension is high, the CITIZEN Group has determined the necessary systems, tasks, and procedures to continue or quickly restore business operations, and formulated a BCP. We, then, conduct BCP trainings and maintenance the BCP in order to adjust to changing risks and pursue effectiveness and sophistication.
In FY2015, CITIZEN’s first ever overseas BCP training exercises were carried out at the production bases of the Group’s watch business in China and Thailand. In FY2016, joint BCP training exercises were conducted between CITIZEN WATCH and CITIZEN WATCH MANUFACTURING.
Trade Secret Management
Aiming for Thorough Trade Secret Management and Enhancement of Corporate Value
Importance of Continuing Firmly Grounded Initiatives as a Group
CITIZEN MACHINERY, which leads the machine tool business in the CITIZEN Group, in FY2011 launched a Committee to Promote Building of a Trade Secret Management System. The committee set quickly to work, and the system began operating in FY2012. As it oversaw the building of the system, the committee wrote "Five Points to Trade Secret Management" (see box at the lower right) and aimed to conduct down-to-earth initiatives. Centering on the Special Committee of Trade Secret Management and each department manager, every year, each department reviews information subject to trade secret management and manage the updated trade secrets.
One of our activities in FY2015 aimed to ensure thorough management of drawing information. In addition to regulations and bylaws, we established “Guidelines on the Handling of Drawings.” Based on these guidelines, we are rolling out specific management operations, including at Group subsidiaries in Japan and overseas, thereby enhancing our trade secret management system. Going forward, we aim to increase our internal trade secret management quality through previously described efforts, and intend to enhance our corporate value by managing trade secrets relating to such department as product development, manufacturing, sales, service, administration, and other areas, and by thoroughly managing information as sources of added values for new business models associated with trade secrets.
Five Points to Trade Secret Management
①The Company's important information (trade secrets) that support its added value shall be appropriately managed
②Appropriate management of trade secrets is a precondition to being legally protected
③It is important that trade secrets be effectively managed
④Trade secrets entrusted to us by other companies shall be protected just like our own information
⑤Overseas expansion of reliable operational management of this system are indispensable
-the Special Committee of Trade Secret Management-