Oisix ra daichi regularly identifies business risks and works to prevent incidents before they can occur and minimize damage in the event that they do. In the event of emergencies, we have a communication system set up to ensure a quick and appropriate response and have an established set of response procedures, including a business continuity plan.
Risk Management System
The Group has established the Risk Management Committee as its organization for risk management. The committee reports directly to the president and consists of a chairperson, members representing each department, and an administrative office.
The Risk Management Committee meets monthly to share risk examples, discuss cross-departmental risk measures, and have individual members report their activities. The committee provides a quarterly report to the Executive Committee, which discusses risk items and gives its approval.
Risks surrounding the Group include natural disasters, environmental changes, quality risk, administrative process risk, personnel risk, compliance risk, system risk, information security risk, and reputational risk.
Risk Management Initiatives
Reports on the main risk measures taken by the Risk Management Committee in fiscal 2020.
At the start of 2020, the coronavirus was still a nascent topic in Japan. Nonetheless, we identified the risk early because some of our services were being provided in Shanghai. After filing a report to management, a response headquarters was established. Subsequently, the virus began to spread in Japan as well, but we were able to quickly address the issue through headquarter operations.
Torrential Rains in July 2020 (Kumamoto Prefecture)
In July 2020, Kumamoto and many parts of Kyushu were damaged by torrential rainfall. The Risk Management Committee began gathering information at a preliminary stage, confirmed the impact on production regions, producers, and deliveries to subscribers, and shared information with division heads and executives. The heavy rainfall caused lasting flood damage to partner factories and temporary interruption of deliveries to some subscribers. We offered relief provisions to be provided through NPOs.
Typhoon Haishen in 2020
When Typhoon Haishen hit in September 2020, we began gathering information through the Risk Management Committee. There was initially an announcement from the Japan Meteorological Agency that the typhoon would reach the force of an emergency warning-level storm, and we projected the impact on our purchasing and delivery operations accordingly. We established a response headquarters once the point and timing of landfall were generally known. Thereafter, trains were shut down for all of Kyushu, and deliveries via Yamato Transport were suspended. Unfortunately, we couldn’t make deliveries, but we responded through the response headquarters by promptly contacting subscribers to offer our apologies.
Heavy Snowfall in January 2021
When heavy snowfall was forecast in January 2021 due to a severe cold wave, the Risk Management Committee began gathering and sharing information. The snowfall’s geographic scope was broad, from Kyushu to Tohoku, and deliveries to the Hokuriku region in particular became difficult. Coordinating with Yamato Transport and between company departments, information was shared on a rolling basis with division heads and executives, and the possibility of delivery delays or stoppages was communicated to subscribers in a timely manner.