Epson 2004 Annual Report Download - page 32

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SEIKO EPSON CORPORATION30
RISKS MANAGED BY EPSON
Risk Management Supervised by
the President to Prevent Crises
and Limit Damage
To remain true to its management
philosophy as a company “trusted
throughout the world,” Epson rec-
ognizes that creating a framework
for preventing and addressing crises
that could seriously jeopardize opera-
tions is a priority for management. To
this end, Epson has constructed a
Group-wide crisis management
structure capable of swiftly respond-
ing to changes in its business
makeup and operating environ-
ment. This structure enables Epson
to head off potential crises or to mini-
mize 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 formation to ensure optimal
flexibility, and (2) tasks each corpo-
rate division to devise “peacetime
measures” for dealing with potential
crises. When a crisis arises, Epson
moves to (1) tackle crises with com-
prehensive capabilities beyond that
of the normal corporate hierarchy,
and (2) assume full responsibility as
befits a good corporate citizen,
disregarding corporate egotism.
Epson’s risk management struc-
ture is designed to manage crises
with a potentially enormous impact
Risk Management
concerns risks directly associated
with its corporate activities; in other
words, risks stemming from the
actions of Epson employees.
To head off risks emerging from
corporate activities, Epson has
appointed a director who is respon-
sible for compliance and has estab-
lished a structure for promoting
compliance. Major points of this
framework include:
•A Compliance Management Com-
mittee for building and maintain-
ing Epson’s compliance structure
•A Legal Compliance Promotion
Office responsible for operating the
internal Compliance Hotline for
reporting compliance issues
•In-house compliance training,
including a Code of Conduct
manual and Web-based seminars
When it comes to compliance,
Epson is aware that no framework
alone is enough, since corporate
activities are determined by the
thoughts and actions of employees.
For this reason, “No Hiding,” “No
Tricks,” and “Report Bad News
Quickly” are mantras for Epson’s
senior management as they strive
daily to maintain the Company’s
sound corporate culture.
For Epson, compliance of this kind
is the cornerstone of its approach
to corporate governance.
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