Risk Management

Basic Approach

In order to achieve Group-wide business targets and ensure sound and sustainable development, the Citizen Group assesses, analyzes, and evaluates risk and engages in activities to appropriately manage risk based on the results of these efforts.

Risk Management Committee

The Citizen Group has established the Group Risk Management Committee, with the president of Citizen Holdings serving as the committee chairman, to promote the establishment, operation, and monitoring of risk management Group-wide.

​In addition, the Group has stationed risk management officers and established the risk management department at its Head Office in accordance with the specific risks that the Group faces. The Group has also set up committees to respond to each major risk theme in an effort to support Group-wide risk management activities.

Risk Management Structure of Citizen Holdings

Risk Management Structure of Citizen Holdings

Overseas Safety Management System

The Citizen Group is promoting safety management for employees. As a first step, we begin to manage safety of staffs going abroad from Japan.

There are increasing numbers of employees who work abroad, but the world is constantly beset by unforeseen circumstances, such as terrorism and political unrest, natural disasters, and infectious diseases. 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 are resident overseas. In the event of unexpected incidents or accidents, this office can confirm staff safety and, if necessary, provide suitable instructions.

This office also monitors overseas risk information on a daily basis and actively provides information to staff on business trips or who are resident overseas.

Business Continuity Plan (BCP)

To prepare for an event where management resources are significantly impacted by a large-scale natural disaster and a business must be halted or suspended, or an event that the possibility of business suspension is high, the Group has determined the necessary systems, tasks, and procedures to continue or quickly restore business operations. In addition, the Group has formulated a BCP that will allow it to continue the supply of products and services, or realize a prompt recovery should that supply be suspended, in the occurrence of such events.

​While aiming to be able to respond to changes in risks and improve the effectiveness and sophistication of its BCP, the Group implements training exercises to prepare for disasters and promotes BCP maintenance.

​In fiscal 2015, 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.

Trade Secret Management

In order to protect our trade secrets, information that is crucial for our business activities, the Citizen Group adopted the Citizen Group Trade Secret Management Regulations in fiscal 2011. In addition, we established the Trade Secret Management Committee as the body for conducting trade secret management within the group. We also undertake group-wide measures from fiscal 2012, such as providing support on the creation of management systems, sharing information concerning trade secrets, and preventing problems from occurring. Citizen Holdings and main group companies have adopted their own trade secret management rules, conduct employee training, and take other measures. Overseas expansion of these programs began in the second half of fiscal 2012.

Aiming for Thorough Trade Secret Management and Enhancement of Corporate Value

Citizen Machinery Co. Ltd.

Importance of Teaching Need for Initiatives
Citizen Machinery, which leads the machine tools business for the Citizen Group, in fiscal 2011 launched a Committee to Promote the Building of a Trade Secret Management System. The committee set quickly to work, and the system began operating in fiscal 2012. As it oversaw the building of the system, the committee wrote "Five Points to Trade Secret Management" (see box at lower right) and aimed to conduct down-to-earth initiatives. Committee members and department managers worked to gain a common understanding of the unique conditions and individual issues of each department.

One of our activities in fiscal 2015 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 efforts such as these. We aim to increase our corporate value by practicing management of trade secrets relating to product development, manufacturing, sales, service, management, and other areas. But going beyond this, we will also practice thorough management of information that is the source of added value for new business models that arise from these secrets.

Five Points to Trade Secret Management
① The Company's important information shall be appropriately protected
② Appropriate management of trade secrets is a precondition to being legally protected
③ It is important that trade secrets be effectively managed
④ Trade secrets entrusted to us by other companies shall be protected just like our own information
⑤ Reliable management, use, and expansion of this system to sites outside Japan are indispensable