Promotion of Risk Management
The Anritsu Group views risks as uncertain events that affect corporate value such as organizational profit and social credibility. In other words, we do not consider risks as necessarily negative but instead as potentially positive events if managed appropriately. We recognize proper risk management as a vital management issue and have established a risk management system for the Anritsu Group as a corporate entity under basic policies concerning the development of an internal control system approved by the Board of Directors. We focus on initiatives that will enhance the risk sensitivity of not only top management but of all employees. At the same time, we promote risk management through an all-inclusive effort to maintain and expand our corporate value, fulfill our corporate social responsibility and seek sustainable development for the Group.
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|Risk Management Policy
The Anritsu Group will maintain and increase its corporate value, fulfill its corporate social responsibility and seek sustainable development for the Group by appropriately managing risks that affect management.
- We will seek to enhance the risk sensitivity of not only general managers but of all employees in an all-inclusive effort to promote risk management.
- General managers and all employees will promote risk management by complying with the Anritsu Group Charter of Corporate Behavior and the Anritsu Group Code of Conduct as well as laws and regulations as the basis of the company’s internal controls.
- We will generate profit and limit losses by controlling management risks related to strategic decision making such as entry into new business areas and product development strategy, as well as operational procedures.
- We will anticipate potential emergency situations insofar as possible to prevent their occurrence. In the event that an emergency does occur, we will seek to minimize and limit losses and promptly extricate ourselves from the critical situation into a state where autonomous recovery is possible, and subsequently prevent a recurrence.
Risk Management Promotion System
The Anritsu Group has identified seven major risk categories: (1) business risks associated with management decision-making and execution of operations; (2) legal violations; (3) environmental preservation; (4) quality of products and services; (5) import/export control; (6) information security; and (7) disasters. We have established a management system for each risk, supervised by the vice president responsible for each risk or the head of the relevant division, who concurrently serves as the chief administrator. The chief administrator is responsible for the committee comprising the heads of relevant divisions and chief administrators of Group companies, exercises overall control of the Group companies involved in managing the relevant risk, and provides timely reports to the Management Strategy Conference on the risk management measures, plans, status of implementation and results of the management cycle throughout the year. In addition, Anritsu’s risk management promotion divisions are responsible for setting rules and guidelines and conducting education and training to raise the level of risk management and ensure ongoing business development. In regard to our overseas Group companies, the regional headquarters in the Americas has set up a task force for managing business risks. With respect to compliance risk, compliance officers at each regional headquarters conduct risk assessments toward formulating annual action plans.
||Risk Categories and Related Rules
||Responsibility for Risk Management
||Committees and Other Organizations
||Business risks associated with management decision making and execution of operations
||Vice president in charge of each business division, presidents of subsidiaries and Vice Presidents in charge of operations
||Executive organ of each business division and the corporate division
||Risks associated with legal violations
||Anritsu Group Charter of Corporate Behavior
Anritsu Group Code of Conduct
|Vice president in charge of compliance
||Corporate Ethics Promotion Committee (Committee for Promoting Fair Trade)
||Risks associated with environmental preservation
||Basic Rules of Environmental Systems
||Chief officer in charge of environmental management
||Environmental Management Committee
||Risks associated with product and service quality
||Rules on Quality Management Systems
||Chief quality officer
||Quality Management System Committee
||Risks associated with export/import control
||Rules on Security Trade Control
||Chief officer in charge of trade control
||Export Control Committee
||Information security risks
||Basic Rules on Information Management
||Chief officer in charge of information management
||Information Management Committee
||Risks associated with disasters
||Basic Rules on Disasters and Emergency Response
||Chief officer in charge of disaster prevention
||Disaster Prevention Headquarters
Enhancing Corporate Value through Internal Controls
The Anritsu Group’s internal control system is intended to raise the effectiveness and efficiency of group management, ensure the validity of financial reporting and establish legal compliance. We are continuously improving and reinforcing the system to respond to the changing business content of the Anritsu Group and growing complexity and diversity of the business environment. This has enabled us to practice sound management activities sustained by a viable internal control system and strive to enhance corporate value.
In the Anritsu Group, the Internal Control Committee, which deals with the validity of financial reporting, and the Corporate Ethics Promotion Committee, which oversees compliance and related committees for information management, promoting fair trade, export control and environmental management, undertake the necessary deliberations, establish and operate internal control systems by implementing cross-Group information sharing and educational programs, and conduct activities to ensure viability.
With regard to our global operations, we have set up a Global Internal Control Committee comprising members of the internal audit divisions in Europe, Asia, the United States and Japan who share the current status of response to risks inherent in the business activities and management issues in each region. They also carry out activities to support the incorporation of internal control procedures into operations and the effective and efficient development of internal control systems.
Furthermore, the Internal Audit Department of Anritsu Corporation and the Group companies, Directors elected as Audit Committee Members and the Management Audit Department conduct audits as part of their responsibility to evaluate the activities of these committees and the internal control system.
Business Continuity Management
●Basic Policy on Business Continuity Management*1
Each Anritsu division creates a business continuity plan (BCP*2) to maintain smooth operations in the event of a disaster or emergency by minimizing damage and resuming full business activities as quickly as possible.
*1 BCM(Business continuity management): Management activities conducted during normal operations, such as formulating, maintaining and updating business continuity plans, securing budgets and resources for continuing business, taking preparatory measures, implementing education and training before launching initiatives, conducting inspections and making continuous improvements.
*2 BCP(Business Continuity Plan): A plan formulated to ensure the rapid resumption of critical business functions in the event that business activities are interrupted by an emergency.
The Anritsu Group has laid out its BCM policy in the following Basic Policy on Disaster Response.
●Basic Policy on Disaster Response
The Anritsu Group establishes a prevention system against disasters that may significantly affect its management, places top priority on ensuring the safety of its stakeholders including employees and local communities in the event of a disaster or accident, and strives to minimize damage and promptly resume business activities in order to fulfill its social responsibility and continue to seek enduring success for the Anritsu Group.
●Business Continuity Management at Manufacturing Bases
The stable procurement of production materials represents the fundamental part of any manufacturing company’s BCPs. Tohoku Anritsu Co., Ltd. and the Koriyama Business Office of Anritsu Corporation, which serve as the manufacturing bases of the Anritsu Group, have formulated BCPs to respond to earthquakes and other natural disasters by identifying them as material risks. These clearly set out concrete steps for each process in the event of a disaster. Applying the lessons learned from an actual large-scale disaster, we revised the criteria for invoking BCPs in an emergency to prepare against a broader range of risks and refined our procedures for responding to each risk.
Information Security Management
Anritsu is making a continuous effort to maintain and enhance information security through its information security management system.
|Basic Rules of Information Management
The Anritsu Group (“Anritsu”) recognizes its social responsibility for effectively protecting information related to all of its stakeholders, including customers, shareholders/investors, business partners and employees, throughout the course of its business operations, which offer “Original and High Level” products and services with sincerity, harmony and enthusiasm. Moreover, we view information as a vital asset for Anritsu and all its stakeholders. Therefore, Anritsu has established these Basic Rules of Information Management and declares it will responsibly handle information assets and take all possible actions to ensure their protection.
- Anritsu shall comply with the laws and social norms governing information assets and information management.
- Anritsu shall build information management systems and strive to effectively manage information assets.
- Anritsu shall develop and implement corporate regulations that define concrete procedures and rules of information management.
- Anritsu shall provide its officers, employees and others with the necessary education and training to deepen their knowledge of information management.
- Anritsu shall implement appropriate human, organizational, physical and technical measures to protect information assets.
- Anritsu shall quickly respond to risks associated with protecting information assets to minimize damage.
- Anritsu shall regularly and continually review and improve the information management activities noted above.
●Management System (Information Security Management)
Anritsu’s management system consists of the Information Management Committee comprising key executive officers from each business division and Group companies, the Information Security Subcommittee comprising representatives from business divisions in Japan, and the Global Security Subcommittee, whose members include Chief Regional Officers at overseas Group companies.
The Information Management Committee formulates basic policies on information management for the entire Group. The Information Security Subcommittee and Global Security Subcommittee develop annual action plans and concrete measures for Group companies in Japan. The plans these high-level bodies formulate are implemented through the actions of each department. Anritsu uses this management system to oversee its PDCA (Plan-Do-Check-Act) cycle.