Risk Management

Changes to our operating environment from such factors as the globalization of the economy and advances in andspread of information and communications technology (ICT) not only lead to the expansion of business opportunities
but also to the diversification of risks to our operations.
We have built a diverse risk management system under which we carry out risk analysis to accurately gauge ongoing
economic and social changes and use the insights gained to take preventive measures and ensure a rapid response toissues that may arise unexpectedly.

Reinforcement of Risk Management System

Creating BCPs* in Key Operations Worldwide

The entire Hitachi Group is reinforcing its risk management

Given the close relation of our business to social infrastructure,system to address increasingly globalized and complexed risks.

we are enhancing our BCPs to ensure that the impact of risks

Under Hitachi, Ltd.’s head of risk management, each businessdoes not disrupt our business and thereby significantly affectoperation assigns an executive handling risk management tosociety. In December 2006, we issued the Hitachi Groupmanage risks mainly concerned with compliance, export control,

Guidelines for Developing Business Continuity Plans in Japanese.

disasters, and crime, and to respond adequately in coordination

In fiscal 2010 these were translated into English and Chinese foramong the entire Group. Furthermore, Hitachi is building a

distribution to all Hitachi Group companies worldwide to ensurecomprehensive risk management system that contains standards

our response readiness for large disasters and other risks.

and procedures to objectively evaluate different risks that may
affect business.

When the Great East Japan Earthquake struck in March 2011,
our BCPs enabled quick responses and swift decision making.
However, issues emerged including identification of secondary

Risk Management System
Risk Management Groupand other suppliers, cloud storage and multiplexing of production information, and the need to secure alternate transportationand fuel sources.

• Compliance

Based on the lessons learned from this disaster, in October• Export Control

2011 we released and distributed new BCP guidelines for depart-• Crisis Management and BCP

mental implementation to further improve our BCPs. Hitachi• Internal Audits, etc.

Group operations in Japan completed their preparation andreview of BCPs, based on applicability to their operations, by theend of fiscal 2011. BCPs for large earthquakes and novel strains
of influenza have been prepared for 49 Hitachi, Ltd. businessStandards and systems for evaluating business and other risks

sites and 96 Group companies.
On top of these efforts, since fiscal 1998, Hitachi, Ltd. has
held annual earthquake drills simulating a major seismic event at

Comprehensive risk management system at the management level

key operations in Japan. In November 2015, Hitachi Automotive
Systems held coordinated drills at its head office and businesssites in the cities of Sawa, Atsugi, and Fukushima, where managers in charge of their divisions confirmed the action plans inemergency situations based on BCPs.
In fiscal 2013, Hitachi appointed personnel in charge of riskresponse policies at its main overseas bases and around 300
companies prepared BCPs with the goal of completing them for
key operations by the end of fiscal 2013. These BCPs are aimed atstrengthening our ability to respond to business risks, including
large disasters, novel strains of influenza, political instability, andsocial disruption, as well as acts of terrorism. Moving forward,
we intend to further expand the scope of our BCPs.
* BCP: Business Continuity Plan38

Hitachi, Ltd. | Integrated Report 2016

Improving Safety for Employees Sent toDangerous Regions(1)	Precautionary measures and prompt security responses

Responding to the hostage incident in Algeria in January 2013,

measures based on vulnerability and risk analyses. We alsothen President Hiroaki Nakanishi reinforced his policy in February

have an emergency manual for security breaches, based on2013 of ensuring the safety of employees sent outside Japan.

the assumption that these are inevitable, and not just possible.

We classify assets to be secured and take safeguarding

Survey missions of in-house and outside experts are now sent
beforehand to areas at high risk of war, terrorism, and other threats.
Even after employees are dispatched to such areas, we conduct(2)	Promoting stronger ethical and security awareness among
data users

additional local surveys every six months as a means of confirming

We have prepared a program tailored to Hitachi’s various

the effectiveness of our safety policies. In fiscal 2014, survey

personnel levels and are working to raise the prevailing sense of

missions were sent to several countries in Africa and the Middle

ethics and security awareness through Group-wide e-learning.

East. In addition, we have introduced a range of safety measures

We are also conducting audits to identify and address problems

in the light of recent terrorist incidents involving Japanese andearly on.

other nationals, including providing timely alerts to employees.
These and other steps underscore our commitment to ensuring
the safety of our employees working around the globe.
Hitachi is also contributing to safety measures at otherJapanese corporations operating outside Japan. To help enhance

Basic Approach to Information Security Governance
Clearly designate assets to be protected• Evaluate information assets and conduct risk analysis

collaboration between the private and public sectors in this area,
Hitachi executives participated in the Council for Public-Private
Cooperation for Overseas Safety organized by Japan’s Ministry ofImprove user literacy

Foreign Affairs, and in June 2014 Hitachi took part in a public-• Supply securityeducation materials• Educate managers
and staff

private kidnap incident preparatory training exercise.
* Incident in January 2013 in which an armed terrorist group attacked a natural gas
refining plant in Algeria. There were more than 30 victims, including 10 Japanese.

Implement preventive
techniques
Information
assets to beprotected• Widely implementadministrativemeasures• Deploy technologicalprocesses

Promoting Information Security
The Information Security Committee, chaired by the Chief
Information Security Officer, determines our information security
policies and procedures. The Information Security Promotion
Council and other bodies convey decisions internally and to othercompanies in the Hitachi Group. Information security officers at
business sites and companies ensure that these decisions are

Establish information security system• Develop rules (security policy)• Create managerial framework• Establish audit and follow-up system• Ensure solid feedback through extensive PDCA
cycles for prevention and accident response

implemented in the workplace.
The Hitachi Group emphasizes two points in information
security and personal information protection:

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