Based on the Risk Management Principles stipulated in the Ricoh Group Corporate Management Principles, the GMC/Internal Control Committee has established a risk management area of responsibility for each business risk and implemented thorough risk management in daily execution and business operations. In addition, the Group has established a division supporting risk management, which provides comprehensive support for executives, risk management areas, and all divisions within the Group.
Risk management process
The Group assigns a risk value based on frequency and degree of impact for external risks such as world trends, incidents and accidents, as well as for internal risks such as changes in the business structure, and creates a two-dimensional risk map to define managerial risks. This is reviewed annually at the time the business plan is being created.
The Ricoh Group pays particular attention to the following types of risk to prevent incidents that may have a major negative impact on corporate business activities, and to minimize the damage in the event that they do occur.
To respond quickly and appropriately in the event an incident arises, we clarify areas of management responsibility and reporting levels according to the nature of the incident. At the same time, we propose the implementation sequence of emergency response procedures and reports to the president and relevant executives based on the president’s policies as applied to the RGS.
In fiscal year ending in March 2014, there were no major incidents that required disclosures to external organizations.
The Ricoh Group has created a business continuity plan (BCP) to enable the business to quickly recover and continue and to minimize the degree of damage in the event of an unanticipated disaster or accident. The BCP has been implemented throughout the Group to ensure a common response to new strains of influenza and widespread natural disasters in Japan.
BCP encompassing supply chain
Many of the parts for Ricoh’s products come from outside suppliers in various locations. From the experience of the Great East Japan Earthquake, the Ricoh Group has been working on a business continuity management system (BCMS) throughout the entire supply chain that will underpin the stable supply of products even in times of disaster.
According to the survey conducted by the Ricoh Group, 70% of the Group’s suppliers now have substitute production facilities. However, less than 20% of the suppliers have the ability to meet the Group’s required timing of deliveries. These results prompted Ricoh to implement BCP seminars for suppliers in Japan, beginning in December 2013, to facilitate the resumption of operations as quickly as possible on both Ricoh and supplier sides in the event of a disaster. These seminars were held at five locations in Japan and approximately 100 companies attended. Ricoh representatives explained the Company’s BCP policy and rolled out activities, such as drills assuming an emergency situation that engaged participants in a simulation running from initial responses through to the resumption of operations.
Participants gained a renewed appreciation for the importance of BCP.