Social Responsibility
About
Risk Management
Risk Management System
Risk Management Committee
To prepare for various types of risks, Konica Minolta has implemented risk management systems for ensuring rapid and rational decision making
The Konica Minolta Group established the Risk Management Committee in order to ensure rapid and rational decision-making in regard to various types of risks encountered in corporate activities, and to minimize the impact of these risks on its business and on society.
The Risk Management Committee is chaired by an executive officer appointed by the Board of Directors of Konica Minolta Holdings, Inc. The committee members are executive officers responsible for various functions of Konica Minolta Holdings and presidents of its business and common function companies.
To ensure effective operation of the Risk Management Committee, we established the Business Risk Subcommittee and the Crisis Management Subcommittee. Members of both subcommittees discuss practical measures to realize the Committee's objectives.
Business Risk Subcommittee
The Business Risk Subcommittee oversees risk management systems to effectively and swiftly deal with risks associated with the Group's business strategies. These risks include those involved in implementing medium-term plans and annual budgets, as well as risks associated with M&A, launching new businesses, and growth strategies for individual business areas. The Subcommittee identifies and analyzes the risks in an integrated manner and makes managerial decisions on countermeasures, while also monitoring PDCA* activities, which are typically implemented by business companies.
- *
- PDCA: PDCA refers to the series of activities expressed as plan, do, check, and action.
Crisis Management Subcommittee
The Crisis Management Subcommittee works to prevent the occurrence of crises based on various risks, and takes charge of countermeasures once a crisis has occurred. It classifies crisis risks into 13 categories, and based on analysis of the risk details, it decides upon the measures to be taken in the following three phases: predictive/preventive measures during non-emergency, emergency, and post-emergency.
Emergency networks shared by Konica Minolta Holdings and the Group companies are actively maintained, which thereby enables the Subcommittee to obtain real-time information from all Group companies, not only in Japan, but also from around the world.
Group companies are asked to promptly send a situation report as soon as there is a suggestion of a problem, and even when there are no signs of an emergency, reports are still required to be sent in. The gathered information on group-wide crisis risk conditions is then reported each month by the Subcommittee to top management.
Factors and Examples of Crisis Risks (excerpts)
| Factors | Examples | |
|---|---|---|
| 1 | Defective products, recalls, product liability lawsuits | Design errors (faulty products, health hazards), errors in manufacturing processes (faulty products, foreign substances contained in products) etc. |
| 2 | Defective services | Inappropriate explanations, discriminatory attitudes toward customers etc. |
| 3 | Personnel-related problems | Ambiguous performance evaluation standards, unfair transfer, human rights infringement such as employment discrimination and harassment, crimes/scandals involving employees etc. |
| 4 | Labor-related problems | Labor disputes, unfair labor practice, child labor, forced labor, occupational health hazards, employee death or suicide caused by overwork etc. |
| 5 | Corporate negligence | Pollution (soil, wastewater, odor), industrial accidents (health and safety hazards, accidents) etc. |
| 6 | Company's unethical conduct | Contacts with illegal groups, scandals, internal disputes, M&A etc. |
| 7 | Inappropriate decision-making on management and marketing | Risks involved in investments, loans, bonds and transactions; excessive competition etc. |
| 8 | Corporate crimes | Illegal acts (violation of Antimonopoly Act, Premiums and Representation Act, Subcontract Act, Tax and Commercial Laws etc.) |
| 9 | Intimidation and other crimes committed against the Company | Obstruction of business (inserting foreign substances in products etc.), robbery, subversive activities etc. |
| 10 | Economic and social disturbances | Oil crises, major power failure, sharp decline in stock prices etc. |
| 11 | International/political upheavals | War, coups, trade conflicts etc. |
| 12 | Disasters and epidemics | Earthquakes, storms and floods, fires, epidemics etc. |
| 13 | Rumors concerning management instability | Incorrect information by mass media, spreading rumors through various channels, including the Internet etc. |
