Fuji Xerox defines risk management as managerial activities that control risk by identifying risk-related events, assessing the likelihood and impact of risks, deciding on and implementing appropriate countermeasures, communicating and reporting relevant information, and monitoring results and correcting problems.
The companywide Risk Management Rules specify how risk is to be managed in the business activities of not just Fuji Xerox but also all of our domestic and foreign affiliates and sales companies. Based on these rules, we deal with any crises that may occur, but also place importance on managing risk in normal times such as product accidents, information accidents and non-compliance.
Contigency risks in particular are managed according to the frequency of their occurrence and the extent of their impact on business. For each such risk, the rules stipulate who has the responsibility and authority, as well as the planning and implementation of countermeasures.
At Fuji Xerox, all important decisions related to risk management are made by the CSR Committee, which is chaired by the president. Moreover, Ethics and Compliance Committee and Information Security Coordinating Committee assist the CSR Committee by screening the matters to be brought up before it and implementing the measures that it adopts.
Each year, Fuji Xerox sets priority themes for risk management according to social trends, environmental changes, the company's business activities, the frequency of occurrence of anticipated risks, the extent of their impact on business, and changes in the business system and in social conditions. In fiscal 2010, we abstracted the potential risks in all of Fuji Xerox's departments and in all of our domestic and overseas affiliates and then prepared a ‘risk map’ by which management proceeded to manage the risks of the company as a whole. In addition, we also confirmed risk management status through sampling from major functions of the company.
In accordance with the applicable company rules, the president formed a general countermeasure office at the headquarters and a local countermeasure office at the site of disaster as a first response to the Great East Japan Earthquake of March 11, 2011. Our safety system was activated to confirm the safety of employees and their families and to determine the level of damage at our sites, and relief supplies were sent to affected sites. In terms of business activities, we temporarily shut down production at production-related affiliates and, since the disaster seriously affected our customers, we continued with emergency response and recovery efforts through the general countermeasure office for three months after the disaster.
Fuji Xerox, together with Fujifilm Holdings and Fujifilm Corporation, donated 770 million yen to support the people and areas affected by the disaster. Fuji Xerox supplied multifunction devices and production printers with high speed and image quality to NGOs to support recovery and reconstruction activities such as printing evacuation center administration manuals, flyers about temporary housing, community information, etc. In addition, given the severity of the situation, steps were taken to eliminate nonessential electricity at business locations and turn off the lighting on outdoor advertising.
Since fiscal 2005 we have been grappling with measures for dealing with pandemics caused by new strains of influenza. For the Type A Influenza (H1N1) which occurred in fiscal 2009, we devised - based on the type of action plan stipulated in the guidelines that we formulated in fiscal 2008 for dealing with pandemics caused by new strains of influenza - measures that give top priority to ensuring the safety of employees. Based on the experience in 2009, we also revised the guidelines. Specifically, in order to continue business should a pandemic occur, we determined which operations would be absolutely indispensable for that purpose - for example, obtaining information on which employees were affected, paying salaries, managing basic information systems, and so on - and assigned an emergency response manager for each of our operations around the world.
We will continue with our recovery and reconstruction activities in fiscal 2011 in the stricken areas in order to ensure continuation of our business activities. At the same time, we will undertake an overall examination of our risk response, including the effects resulting from major earthquakes and aftershocks, tsunamis, and nuclear accidents, in order to strengthen disaster response throughout the company.