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Risk and Crisis Management

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Basic Approach

The Canon Marketing Japan Group (hereinafter the "Canon MJ Group") has divided its crisis management activities into two categories, risk management activities, which are preventive measures, and crisis management activities, which are responses to crises that have occurred.
While they are both components of crisis management, their purpose and phase of response are different. Accordingly, we have established measures with structures tailored for each of them, and we are moving forward with initiatives to ensure the stability and continuity of our corporate activities.

Risk Management (Preventive Measures)

The goal of these initiatives is to prevent critical situations by proactively identifying and assessing the various risks that could occur in our corporate activities. 

Target: Predictable risks
Purpose: Prevention of occurrence and examination of countermeasures
Major activities: Risk assessment, development of rules, training, awareness-raising activities, etc.

Crisis Management (Handling of Crises That Have Occurred)

The goal of these initiatives is to prevent the expansion of serious crises that could threaten the continuity of corporate activities or the survival of the company and minimize damage.

Target: Sudden serious crises
Purpose: Prevent the expansion of crises and minimize damage from them (preserve the continuity of corporate activities, quickly resume activities, etc.)
Major activities: Formulation of response policies, including initial responses, business continuity and resumption plans, training, etc.

Structure

We have established a Risk and Crisis Management Committee, its chairperson is Director, Senior Vice President (responsible for the Group's human resources and general affairs), for the purpose of building and implementing risk management systems and crisis management systems in order to improve corporate value of the Canon Marketing Japan Group (hereafter, the "Canon MJ Group") and minimize loss for our stakeholders.

The Risk and Crisis Management Committee was established as a body separate from the Audit & Supervisory Board, and the Director and Senior Vice President, who chairs the Risk and Crisis Management Committee, is not a member of the Audit & Supervisory Board.

The Risk and Crisis Management Committee is held four times per year. It was held in January, April, August, and November.

Committee chair : Director in charge of Group General Administration & Human Resources Management Committee vice-chair : Director in charge of Group Information & Communication Systems Members : Vice Presidents and above, Group Executive of Corporate Planning Headquarters, Group Executive of Brand Communication Headquarters, Group Executive of General Administration & Human Resources Headquarters, and Group Executive of Legal and Intellectual Property

Initiatives

Areas of Activities of the Risk and Crisis Management Committee

  1. Preparation and set up of risk management systems
  2. Preparation and set up of crisis management systems (including BCP)
  3. Raising and promoting awareness of corporate ethics and compliance
  4. Information security
  5. Internal reporting response

Building and Establishing Risk Management Systems

Subordinate to the Risk and Crisis Management Committee, compliance departments are offices in the domain of risk management that assess risks company-wide in view of the potential damage they could cause, the severity of their impact, their frequency, their likelihood and other factors to identify the risks that the Canon MJ Group faces each year. They then establish risk management systems and formulate measures to address risks. These risks include the violation of laws, regulations and corporate ethics, a wide range of corrupt acts including bribery, environmental issues, quality issues, and information leaks. We have been examining these risks to identify priority risks that are considered important and taking positive steps to address them in collaboration with related departments.
In addition, we carry out risk management activities in accordance with the annual activity plans that have been developed and approved by the Board of Directors.
We assess the state of development and operation of the risk management system and the Board of Directors checks its effectiveness every fiscal year. (Individual companies in the Group also report their findings to their respective boards of directors.)
These systems in compliance with our Risk and Crisis Management Regulations establish the basic policy on risk and crisis management and the risk and crisis management systems of the entire Canon MJ Group.

Development and Establishment of Crisis Management Systems

Working under the Risk and Crisis Management Committee, the departments responsible for crisis management, which serve as the administrative offices for crisis management matters, assess the damage from and impact of sudden, serious risks such as natural disasters and work to establish crisis management systems to ensure a quick and appropriate response to crises. In addition, Canon MJ identifies operations that are important in the achievement of business continuity and the fast resumption of operations, and it formulates and reviews measures every year on an ongoing basis using a PDCA cycle in cooperation with related departments. As with risk management, these systems are developed and operated in conformity with the Risk and Crisis Management Regulations of the Canon MJ Group.

For more information about our business continuity activities, see Business Continuity.

Raising and Spreading Awareness of Corporate Ethics and Compliance

For us, compliance is not simply a matter of obeying laws and regulations. We also commit to complying with laws and social rules, maintaining social justice, and continuing to meet the expectations of society based on the spirit of integrity (being sincere, honest, and earnest) . We engage in compliance from the perspectives of initiatives to raise awareness, educating, and undertaking organizational activities to ensure that all of our people act ethically and obey the law.

For information about specific compliance advancement measures, see Compliance.