Comprehensive Risk Management

Basic Approach

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.
Under the committee, the CITIZEN Group has selected risk management officers and set up committees responsible for risk management in order to advance the Group’s understanding and response to major risk themes. In FY2018, the Group will establish a Group Quality Compliance Committee for the purpose of formulating Group-wide quality guidelines, understanding and reducing the risks related to quality across the entire Group, and promoting quality management-related training, education and auditing.

リスクマネジメントプロセスの基本

Group Quality Compliance Committee established

In order to review and formulate firmer quality compliance measures across the CITIZEN Group, a new Group Quality Compliance Committee has been established. The committee is intended to set guidelines for the Group as a whole in relation to quality, referencing opinions and advice from external experts and holding discussions with directors in charge of quality assurance from each Group company. The CITIZEN Group will also periodically provide training and education and carry out audits pertaining to the abovementioned guidelines to ensure a common understanding among all Group employees, and improve awareness of the need for quality compliance across the whole Group.

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 FY2017, a joint BCP training was carried out between the headquarters in Japan and the production hub of the Group’s watch business in Thailand via telephone and internet link. The training with an overseas production base via using an online conference link raised issues to be dealt with, so we will continue to work on and improve this initiative.

Trade Secret Management

In order to protect trade secrets and the information crucial to our business activities, the CITIZEN Group established the Group Trade Secret Management Regulations in FY2011. The Committee to Promote Building of a Trade Secret Management System was then established in FY2012 in an effort to build a management system for trade secrets within the Group. Currently, the Group Information Governance Committee promotes the management and operation concerning trade secrets, and works on information-sharing and addressing raised issues. Along with these activities, the Group also conducts employee education to ensure that employees are well informed about these matters.

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-