Omron 2013 Annual Report Download - page 23

42 Omron Corporation Integrated Report 2013 43
Where We're Headed
—What does risk management mean
to Omron? Also, why is risk manage-
ment necessary?
Sakumiya: Risk management has two sides. One
is the advance preparation for managing risks and
the other is the proactive action of taking risks. A
company must pursue the maximization of earnings
under the given operating conditions. At the same
time, a company must fulfi ll its responsibility toward
society. It is impossible to move forward without
properly managing risks. Losses can be incurred if
opportunities are missed by not taking risks; these
are equitable to those resulting from losses from
insuffi cient advance preparation.
Business activities are always accompanied by
risks. Legal and compliance risks are a given.
Recently though, companies have been forced to
address a series of natural disasters, including the
Great East Japan Earthquake, fl oods in Thailand,
and the outbreak of the new form of infl uenza
virus, as well as the rising risks of terrorism and
international political issues. To become a stronger
company, adaptability to change is essential, in
addition to the realization of growth potential and
profi tability. The Omron Group is advancing the
strategies of VG2020 and has displayed its intention
to proactively expand operations in emerging coun-
tries and conduct M&A activities. However, as the
Group takes on challenges in new areas, it will
be important to predict accompanying risks. As
a member of the Board of Directors, which is re-
sponsible for monitoring and supervising the risk
management efforts of executive departments,
I feel that strengthening such efforts is a matter of
pressing importance for Omron given the circum-
stances I just described.
—What are some important points
for Omron?
Sakumiya: Omron is developing a diverse range of
businesses on a global scale under a decentralized
management structure. Its operating conditions are
such that trouble in an individual business in one
region could instantly develop into a large risk for
the overall management of the Omron Group. For
this reason, it is essential to manage information
and countermeasures for all possible risks in an
integrated and global manner. As such, “integra-
tion” and “global” are keywords for risk manage-
ment. Accordingly, we named our efforts
“integrated global risk management.”
Further, Omron’s risk management is not simply
about reducing exposure to risks. The corporate
core value of the Omron Principles is “Working for
the benefi t of society,” and accordingly Omron also
views risk management as an opportunity to work
toward such benefi t. For example, we have the
important mission of protecting public transportation
systems in the event of a disaster. To that end, we
have defi ned critical products for this purpose from
among such items as traffi c signals, ticket vending
machines, and automated ticket gates and prepared
replacements parts for such equipment. We also
consider alternative modes of transportation should
public transportation systems be rendered unusable
and have readied emergency rations and disaster-
Integrated Global Risk Management Policies
Core Theme
4Omron’s Risk Management as Explained by Directors
Two Keywords:
Integration and Global
Omron will pursue integrated global risk management
by striking a balance between advance preparation
and proactive action.Akio Sakumiya
Senior Managing Director
4
Co
C
C
o
C
C
o
C
C
1
2
3
We will integrate and carry out risk-related activities from a global perspective for
the purpose of securing the continued existence of the Companies and enabling
them to achieve their targets and fulfi ll their corporate social responsibilities.
Based on the Basic Rules of Integrated Global Risk Management, we will endeavor
to avoid, reduce, and transfer losses by collecting risk information, conducting risk
analyses, and implementing countermeasures against risks.
We will identify critical risks to the Group and enable Groupwide responses through
the Executive Council.
In a time of crisis, we will make reports in accordance with established procedures
and form response teams necessary to address the crisis.