Risk Management

Basic Policy for Risk Management

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 Fuji Xerox 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 in formation accidents and non-compliance.
Contingent 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 responsibility and authority, as well as the planning and implementation of countermeasures.

Basic Policy for Risk Management

1) Purpose

To maximize value for stakeholders by appropriately controlling and responding to risks in all organizational units and businesses

2) Prerequisites for control

  1. Risk management covers all organizational units, businesses and tasks.
  2. Risks are identified and decisions on countermeasures are made systematically and rationally.
  3. Rational and effective responses are determined in accordance with the potential impact and likelihood of risks.
  4. Rules and records are thoroughly documented to promote shared understanding by all involved and to strengthen accountability.
  5. The effectiveness of the establishment, operation and maintenance of risk management systems is assessed in each business year.
  6. Sufficient management resources are deployed, effective communications are conducted, and employees are effectively motivated and assessed for evaluation.

Risk Management Promotion System

At Fuji Xerox, all important decisions related to risk management are made by the CSR Committee, which is chaired by the executive responsible for risk management. All-FX Risk Response Examining Unit will be convened to assist the CSR Committee if an issue arises involving the management of a particular risk.

Risk Management Promotion System (Fuji Xerox)

Risk Management Promotion System (Affiliates)

Fuji Xerox's Initiatives in Fiscal 2013

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 2013, we continued our efforts from the previous year, in moving forward with disaster-prevention measures against large-scale natural disasters based on lessons from the Great East Japan Earthquake, and the company also identified the most pressing risks and discussed countermeasures within the CSR Committee.

Risk map for managing risk

Incorporating the lessons of the Great East Japan Earthquake in Disaster-Prevention Activities

The following measures incorporate some of the lessons learned from our review of responses to the March 11, 2011, Great East Japan Earthquake, particularly in areas directly affected by the disaster:

  1. Renewed study of the potential impact of tsunamis
  2. Drills to ensure the safety of employees and their families
  3. Improve and increase stored supplies (food, water, emergency supplies)
  4. Efforts to standardize emergency radio units and reviewing the facilities to which they are distributed
  5. Efforts to enhance business continuity planning with respect to product supply
  6. Initial mobilization drill for the Integrated Response Headquarters
  7. Deployment of disaster-prevention rules for major earthquakes at affiliates
  8. Preparation of an initial mobilization manual
  9. Assignment of emergency facility managers
  10. Conduct safety inspections at the locations

Countermeasures for New Strains of Influenza

Since fiscal 2005, we have grappled with measures to respond to potential pandemics caused by new strains of influenza. For the Type A Influenza (H1N1) outbreak of 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.
In fiscal 2013, we strengthened business continuity plans for deployment in the event of a pandemic. As part of personnel transfers, we assigned new personnel to oversee emergency response. We also implemented measures against pandemics at our new affiliates both in and outside of Japan.

Future Direction

In fiscal 2014, we will continue to strengthen disaster prevention and mitigation and business continuity efforts in all business domains to ensure that the experiences and lessons learned from the Great East Japan Earthquake are not forgotten. The CSR Committee will review these efforts on a regular basis.
We will also steadily implement company-wide countermeasures based on the above guidelines in preparation for pandemics of new strains of influenza or other infectious diseases.