Epson 2005 Annual Report Download - page 27

28 Seiko Epson Annual Report 2005
Compliance
Management
Political/
Economic/
Social Risks
• Country risk
Management
Risk
• Leakage of
sensitive information
• Crime against
company
• Product liability
• Quality Incidents
Risks from Accidents/
Natural Disasters
• Damage from disasters
• Computer system crashes
쎱
Risks Managed by Epson
Risk Management Supervised
by the President to Prevent
Crises and Limit Damage
To remain true to its management phi-
losophy as a company “trusted
throughout the world,” Epson recog-
nizes that creating a framework for
preventing and addressing crises that
could seriously jeopardize operations
is a priority for management. To this
end, Epson has constructed a Group-
wide crisis management structure
capable of swiftly responding to
changes in its business makeup and
operating environment. This structure
enables the company to head off
potential crises or to minimize the effect
in the event of one.
The following policies guide Epson’s
actions concerning risk. To prevent
crises, Epson works to (1) anticipate
changes by reviewing its corporate
structure to ensure optimal flexibility,
and (2) task each division to devise
“peacetime measures” for dealing with
potential crises. When a crisis arises,
Epson moves to (1) tackle the crisis with
comprehensive capabilities beyond that
of the normal corporate hierarchy, and
(2) assume full responsibility as befits a
good corporate citizen, disregarding
corporate egoism.
Epson’s risk management structure
is designed to manage crises with a
potentially material impact on the
Group. Uniform risk management is
then enacted by each organization
across the Group. Should a crisis occur,
Epson aims to marshal its comprehen-
sive capabilities to swiftly meet the crisis
head-on in an appropriate manner,
while ensuring that its posture remains
flexible vis-à-vis external changes. To
ensure that information regarding
significant risks is reported directly to
the president, Epson has a Crisis Man-
agement Committee, composed of
Risk Management separate sub-committees responsible
for risk management for each opera-
tions division, unit, that is chaired by
the company president. Epson has
formulated a Crisis Management
Program that defines seven categories
of crisis (leakage of sensitive informa-
tion, damage from disasters, country
risk, crimes against the company,
computer system crashes, product
liability, and quality incidents), as well
as the risk management organization,
roles, preventative measures, and
response for each crisis situation.
Information about this program has
been compiled into a comprehensive
brochure distributed Group-wide to
promote an in-depth awareness of
crisis management. For stakeholders,
Epson utilizes IR and PR to proactively
disclose facts in a timely manner regard-
ing the status of risk management.