BCM and Crisis Management
Goals and Achievements of Major Initiatives
Ensure the continuity of DIC Group businesses.
|Goals for fiscal year 2021||
|Achievements in fiscal year 2021||
|Goals for fiscal year 2022||
- 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 business continuity plans (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 2021
While fiscal year 2021 was the second consecutive year in which the DIC Group did not suffer significant damage from natural disasters, decisive steps were once
again required to curb the spread of COVID-19 and the Group continued working to implement effective measures in response to evolving circumstances.
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 an average year, training includes conducting 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 BCP-focused joint production division–site exercises.
In fiscal year 2021, DIC fully deployed the DIC BC Portal, a dedicated portal system to allow the sharing of information among the headquarters task force, production divisions and sites in the event of an accident or disaster. The year’s headquarters task force training was based on a scenario assuming the widespread use of telework arrangements, making it necessary for the task force to operate exclusively via online meetings, and involved linking the task force with multiple production facilities, branches and other sites and using the Group’s web conferencing system in tandem with the DIC BC Portal to ensure the smooth online sharing of information in the event of a disaster.
Improving the Effectiveness of BCPs and Preventing Them from Becoming Mere Formalities
The DIC Group works to refine the format of its BCPs to prevent them from becoming mere formalities. In fiscal year 2021, the Group adjusted its BCP
format, taking into account the future evolution of Group companies, to comply with the requirements of ISO 22301, the International Organization for
Standardization’s standard for business continuity management systems. With the aim of bringing its BCPs closer in line with the ISO standard, the Group
incorporated measures to counter issues that obstruct business continuity.
The DIC Group also conducts annual status update meetings attended by relevant executives to verify that the content of individual product division BCPs to ensure they remain relevant. The fiscal year 2021 status update meeting included examining measures for countering issues that obstruct business continuity and confirming updates.
Conducting Emergency Response Exercises and Drills
In addition to annual headquarters task force–led training, 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 swift restoration of operations. This system includes a wide range of exercises and drills, including employee safety confirmation report drills, site-to-site emergency radio warning drills and site-specific comprehensive disaster drills. The aforementioned headquarters task force–led training used a scenario involving a disaster occurring at a time when many officers and employees were making use of telework arrangements, with all corporate headquarters–based executive officers participating online, to ensure the headquarters task force’s ability to function even in a situation where telework is the norm. The Group is also currently developing a program to train site employees in the use of the newly deployed DIC BC Portal to facilitate its incorporation into drills conducted at sites.
Efforts to Reinforce Safety Measures Overseas
Owing to the expansion of its global operations, the DIC Group continues to establish new overseas bases and to expand the number of employees being assigned to overseas posts or traveling overseas on business. Given the increasing risk posed by terrorist attacks, insurgencies and infectious disease outbreaks, among others, the Group has prepared a manual for use by employees taking up new overseas posts. The Group recently revised this manual, focusing on sections related to responding to infectious diseases, to assume various new outbreaks.
Community Efforts to Cope with Major Disasters
Japan is one of the most earthquake-prone countries in the world and 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 office buildings. A
comprehensive neighborhood disaster drill is conducted annually on an empty lot near the DIC Building, but given the rapid spread of COVID-19 in 2021 the
drill was replaced by disaster response training, provided by the fire department in charge of the drill, with the aim of maintaining existing know-how and skills.
The DIC Building, designed with state-of-the-art earthquake-resistant technologies, has been designated as a temporary shelter for people stranded in Chuo-ku, the ward in which 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.
Responding to New Infectious Diseases
DIC has prepared a headquarters task force manual and product division BCPs for responding to infectious diseases to guarantee it is fully prepared to
respond to pandemics when they occur. However, because these assumed outbreaks of new strains of infl uenza they proved inadequate in dealing with
COVID-19. Accordingly, the headquarters task force manual was revised significantly, as was the format for BCPs, to include general and universal measures
designed to cope with new infectious diseases other than infl uenza.
In fiscal year 2021, DIC continued to promote actions designed to help thwart the further spread of COVID-19 and protect employees from infection. These included maintaining its prohibition on business trips worldwide; encouraging employees to make use of telework arrangements, including by 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 they live with feel unwell; and avoiding holding meetings and events.
We built an internal information sharing and communication system that will ensure the smooth communication of instructions in the event of a disaster or accident.
Infocom Corporation’s crisis management business offers the BC Portal information management portal system, a communication tool that addresses the need
to swiftly and accurately grasp and share information on damage suffered in the event of a disaster or accident, to companies and municipalities across Japan.
After signing an agreement with DIC in 2020 to develop a customized version of this system, the DIC BP Portal system became fully operational in 2021.
In building the DIC BC Portal system, we paid particular attention to needs engendered by the Company’s far-fl ung network of production bases and operational rules. We sought to customize the system from the user’s perspective, including by adjusting the home screen and tailoring order of input fields, to ensure superior practicality. Management participated actively in the subsequent headquarters task force–led training incorporating the DIC BC Portal system to ensure its effective deployment and I found myself impressed by the high level of crisis management awareness throughout the entire Company. I look forward to seeing DIC expand deployment of this system and that it will help further bolster the Company’s crisis management capabilities in the years ahead.
Certified Business Continuity Specialist Grade II, Crisis Management Department, Infocom Corporation Yukikazu Hayasaka
We are working to realize truly functional initial response and business continuity support systems.
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.
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.
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