BCM and Crisis Management

Goals and Achievements of Major Initiatives

Ensure the continuity of DIC Group businesses.

Goals for fiscal year 2020
  • Periodically revise BCPs and reinforce/expand cooperation among product divisions and sites.
  • Strengthen efforts to create a global crisis management configuration and promote BCP initiatives.
Achievements in fiscal year 2020
  • A periodic revision of BCPs was conducted, as scheduled.
  • The decision was made to introduce a system for sharing information in the event of an accident or disaster to reinforce cooperation among the headquarters task force, product divisions and sites. A demonstration of the use of this system in joint initial response training with sites was conducted as part of training for the headquarters task force.
  • The preparation of eight risk-specific manuals for Company representatives assigned to overseas posts (including a revised version of the manual on responses to infectious diseases incorporating responses to COVID-19) was completed.
Evaluation ★★
Goals for fiscal year 2021
  • Periodically revise BCPs and reinforce/expand cooperation among product divisions and sites.
  • Strengthen efforts to create a global crisis management configuration and promote BCP initiatives.
  • Evaluations are based on self-evaluations of current progress.
    Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Basic Approach to BCM and Crisis Management

The DIC Group accounts for all risks with the potential to interrupt business continuity through BCM, including those related to natural disasters such as major earthquakes, typhoons and floods; influenza and other pandemics; and explosions, fires, leaks and other facility accidents. The Group comprehensively estimates the probability of each risk and its impact on management, prioritizing response measures for more significant risks. The Group has also established a task force framework encompassing a headquarters task force, business task force and on-site task forces, as well as prepared risk-specific manuals for use Groupwide, and continues to promote efforts that include producing and revising BCPs for key products, formulating BCM and crisis management countermeasures, and updating information.

Framework for Promoting BCP

Having prepared crisis management rules and risk-specific manuals for use across the DIC Group in the event of a major disaster, DIC has formulated BCPs for individual product divisions. The Group also recognizes the need to ensure it can fulfill its supply responsibilities in the event of damage to its facilities from a large-scale natural disaster and thus incorporates this perspective into its BCPs. Specifically, the Group formulates BCPs for key products with a view to fulfilling its social responsibility and responding to customer requirements. DIC also conducts BCP-focused joint production division–site exercises assuming the implementation of these BCPs to confirm the effectiveness of manuals, identify issues and implement ongoing improvements.

BCM in Fiscal Year 2020

While fiscal year 2020 was fortunately a year in which the DIC Group did not suffer significant damage from natural disasters, additional decisive steps were required to curb the spread of COVID-19, including the shipment of masks and noncontact thermometers to Group sites worldwide. Moreover, because the existing pandemic BCPs were premised on a novel influenza virus, they were not compatible with the measures required for a novel corona virus, as a result of which DIC recognized the need to create new pandemic manuals that are not limited to responses tailored to one specific infectious disease. Accordingly, the Company aims to revise its pandemic BCPs with a focus on common, universal measures appropriate for all types of infectious disease.
Responding effectively to accidents and disasters depends on employees having a correct understanding of BCM and of how to properly execute DIC’s BCPs. This in turn requires education and training. In fiscal year 2020, we continued to focus on training for and efforts to enhance awareness among individuals involved in BCP across the DIC Group. In an average year, training includes holding workshops and map-based simulation exercises (originally developed for senior management) for headquarters task force members under the supervision and guidance of experts, as well as conducting BCP-focused joint production division–site exercises.
In fi scal year 2021, DIC plans to fully deploy the DIC BC Portal, a dedicated portal system to allow the sharing of information among the headquarters task force, product divisions and sites in the event of an accident or a disaster. In fi scal year 2020, headquarters task force training included a trial of this portal system based on a scenario involving an accident at the Tokyo Plant, after which the headquarters task force set up communications with the Tokyo Plant, allowing the latter to share information regarding the imagined accident.
Going forward, DIC plans to use the DIC BC Portal in conjunction with its web conferencing system to facilitate the sharing of information simultaneously between the headquarters task force and multiple sites.

Preventing BCPs from Becoming Empty Formalities

The DIC Group holds annual status update meetings, attended by relevant executives, to verify that the content of BCPs that have been formulated is current and to prevent them from becoming empty formalities. DIC recognizes the need to ensure that divisions and departments share a common crisis awareness to enable the prompt restoration of operations using limited resources in the event a production site is damaged by a disaster or other event. The aforementioned BCP-focused joint production division–site exercises, which are held annually, are designed to confi rm the effectiveness and functionality of product division BCPs through disaster prevention and mitigation exercises based on hypothetical scenarios. They also seek to improve responsiveness to newly recognized issues with the aim of enhancing initial responses in the event of a disaster and of improving site restoration, complementary production strategies, supplier management and local responses. Despite having to pause this initiative temporarily in fi scal year 2020 because of COVID-19, DIC plans to continue conducting these joint exercises going forward.

Conducting Emergency Response Exercises and Drills

In addition to annual headquarters task force–led training and BCP-focused joint production division–site exercises, the DIC Group has developed and works to maintain a system designed to ensure its ability to minimize damage in the event of a disaster, as well as to facilitate the smooth restoration of operations. This system includes a wide range of exercises and drills, including employee safety confi rmation report drills, emergency radio warning drills between sites and site-specifi c comprehensive disaster drills. In fi scal year 2020, the headquarters task force also conducted a drill using a scenario involving a disaster occurring at a time when many offi cers and employees were making use of telework arrangements, with all corporate headquarters–based executive offi cers participating online, to ensure the headquarters task force’s ability to function even in a situation where telework is the norm.

Comprehensive disaster drill at corporate headquarters

Comprehensive disaster drill at corporate headquarters

Task force map-based Simulation exercise

Task force map-based Simulation exercise

BCP training at corporate headquarters

BCP training at corporate headquarters

Crisis Management

Efforts to Reinforce Safety Measures Overseas

Owing to the expansion of its global operations, the DIC Group continues to establish new overseas bases and increase the number of employees being assigned to overseas posts or traveling overseas on business. Given the rising frequency of terrorist acts and the dangers posed by infections disease outbreaks and other such incidents in various locations, the Group has prepared manuals for use in the event of, for example, a natural disaster, pandemic or automobile accident, as well as reinforced measures to help employees evade danger. The Group has also taken steps to advance awareness among related individuals and to reinforce corporate headquarters’ ability to respond effectively in an emergency situation by establishing an emergency overseas contact network, providing risk information to overseas bases, distributing safety handbooks, providing safety training to employees prior to taking up new overseas posts or embarking on overseas business trips, preparing crisis management manuals and conducting exercises based on hypothetical scenarios.

Safety training for employees prior to taking up new overseas posts

Safety training for employees prior to taking up new overseas posts

Safety training for individuals prior to traveling overseas on business

Safety training for individuals prior to traveling overseas on business

COMMENT

We are working to realize truly functional initial response and business continuity support systems.

Advisor, Rescuenow Inc. Kazuki Hakamada

We began providing assistance to DIC in July 2019, particularly in the area of initial response and BCP training based on hypothetical scenarios involving major earthquakes. DIC products are used widely and many can be said to be essential to society. In my view, it is important for DIC to further strengthen its disaster response system to ensure its ability to maintain stable supplies, even in the event of a major earthquake or other disaster.
In fiscal year 2019, we helped DIC conduct BCP-focused joint production division–site exercises at the Yokkaichi, Sakai and Tokyo plants. With the aim of examining the effectiveness of initial response manuals and identifying areas requiring improvement, participants in these exercises used damage assumptions with the aim of achieving a heightened level of reality for scenarios used, proceeding with simulations as well as confirming rules for and identifying issues related to information sharing and collaboration between product divisions and sites. We also helped with headquarters task force–led training, which employed a scenario involving a Nankai Trough earthquake, confirming the flow of reporting from production facilities and product divisions and incorporating instructions for critical tasks in exercises, among others.
Through these and other efforts, DIC is working to build a system that ensures information related to the Company’s initial response and BCPs is shared with management swiftly and accurately. I hope that readers will continue to follow DIC’s efforts to further enhance its BCPs going forward.

Advisor, Rescuenow Inc. Kazuki Hakamada

Our goal is to help facilitate the formulation of effective and genuinely practical BCPs.

President, Legal & Risk Management Institute Ken Mori

Our organization has provided assistance to DIC in its efforts to promote awareness of and revise its BCPs since October 2016. What makes DIC’s BCP and risk management efforts different from the more standard undertakings of many other companies is their focus on ascertaining the essence of issues. In 2017, we assisted with visiting BCP lectures at domestic Group sites, the objective of which was to promote awareness by focusing on the people actually responsible for formulation while confirming the basics of BCP and examining the state of related initiatives to clarify where issues exist. During 2018, we will help arrange joint drills for sites—primarily plants—and product divisions and continue advancing initiatives designed to fortify the framework for collaboration between sites and product divisions. Our efforts are designed to avoid turning this process into mere formality, but rather to facilitate the formulation of effective and genuinely practical BCPs. Expect good things from DIC’s BCP and risk management initiatives in the years ahead.

President, Legal & Risk Management Institute Ken Mori

DIC is promoting measures that will ensure sustainable safety for Japan-based employees when they are abroad.

Senior Executive Advisor, Relo Panasonic Excel International Co., Ltd. Hiromichi Tsuji

Effective risk management is indispensable to meeting the expectations of stakeholders worldwide in today’s increasingly global corporate society. We have been assisting DIC in formulating safety- and healthcare-related measures for its Japan-based employees when they go overseas since fiscal year 2016. Since the beginning, DIC has worked actively to create a robust framework that is capable of responding to whatever issues might arise and has taken decisive steps with a view to ensuring effective corporate governance and fulfilling its obligation to ensure its employees’ safety. In fiscal year 2018, DIC prepared various handbooks and conducted training sessions for approximately 760 employees at four sites.
As this shows, DIC’s initiatives are not limited to the creation of a framework, but also focus on fostering a common crisis awareness on the front lines. Such efforts to leverage the framework it has created are enabling DIC to promote measures that will ensure sustainable safety for its Japan-based employees when they are abroad.
In fiscal year 2019, DIC will take steps to strengthen its framework. The Company will also apply this framework in a manner that responds to the needs of employees at sites around the world, thereby providing further support for its global business activities.

Senior Executive Advisor, Relo Panasonic Excel International Co., Ltd. Hiromichi Tsuji

DIC Corporate Headquarters’ Emergency Pocket Books

Approximately 1,400 employees of the parent company and various domestic Group companies work at the corporate headquarters in Tokyo. DIC has prepared Emergency Pocket Books, pocket-sized booklets that provide instructions on appropriate actions—both autonomous and in cooperation with others— in the event of a disaster for distribution to these employees and their families. The booklets also detail corporate headquarters’ overall emergency response framework and the responsibilities of individual floors and departments in an emergency situation, as well as provide space for employees and their families to provide contact information. The compact size of the booklets ensures portability.

Emergency Pocket Books

Emergency Pocket Books

Community Efforts to Cope with Major Disasters

Japan, which is one of the most earthquake-prone countries in the world, has been struck multiple times by devastating seismic activity. As a consequence, ensuring earthquake readiness, that is, the ability to prevent and mitigate the impact of earthquakes, is recognized as a critical challenge for society as a whole. Tokyo’s Nihonbashi district, home to DIC’s corporate headquarters, is noted for its tightly clustered large commercial complexes and offi ce buildings. Every year, a comprehensive neighborhood disaster drill is conducted on an empty lot near the DIC Building.
The DIC Building, designed with state-of-the-art earthquake-resistant technologies, has been designated as a temporary shelter for people stranded in Chuoku, where Nihonbashi is located, while DIC, as a member of Chuo-ku’s management council for emergency shelters for stranded individuals, promotes a variety of initiatives aimed at assisting people stranded in the wake of a serious earthquake or other disaster. The Company also participates in drills in collaboration with local authorities designed to guarantee the effective sharing of information regarding evacuations, among others, even in the midst of post-disaster chaos. DIC will continue to play an active role in community-based efforts to reinforce local disaster preparations. In doing so, the Company aims to help ensure Tokyo’s disaster resilience.

Emergency training in the use of AEDs and hemostasis

Emergency training in the use of AEDs and hemostasis

Training in the use of fi re hydrants to extinguish fires

Training in the use of fire hydrants to extinguish fires

Exhibit of DIC Building temporary shelter for people stranded in Nihonbashi

Exhibit of DIC Building temporary shelter for people stranded in Nihonbashi

Map-based training conducted as part of a community disaster drill

Map-based training conducted as part of a community disaster drill

Responding to Pandemics

DIC prepares product-specific pandemic BCPs in non-emergency times to guarantee it is fully prepared to respond to pandemics when they occur. To ensure preparedness for the concurrent infection of multiple employees, the Company has also developed response plans for individual production lines at each of its production sites. Having recognized that because different infectious diseases behave in different ways, responses tailored to one particular disease may not be effective for all pandemics. Accordingly, the Company plans to revise its pandemic BCPs with a focus on common, universal measures appropriate for all types of infectious disease.
In response to the emergence of COVID-19 in fi scal year 2020, DIC has focused on carrying out actions designed to help thwart the further spread of the virus and to prevent employees from becoming infected. These include prohibiting business trips worldwide; instituting telework arrangements, including for normally ineligible temporary staff; staggering working hours for those employees whose work requires them to be on-site; mandating individuals remain at home when they or any of the people with whom they live feel unwell; and encouraging the avoidance of meetings and events.
The DIC Group remains keenly aware of the potential signifi cant impact of risks related to pandemics and other large-scale disasters in terms of the interruption of its supply chain and overall impact on materials industries. Accordingly, the Group is working to develop BCPs that take its supply chains into account.