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Governance

Risk Management

Overview of the Risk Management and its Structure

Overview of the Risk Management and its Structure

Our CSR and Risk Management Committee conducts regular risk assessments to determine what risks exist, define important risks that require a companywide response and prioritize measures to counter these risks. Through specialized committee activities in segment-specific areas—environment, quality, safety, disaster prevention—we are working to manage the risks that relate to our business activities.

Important Companywide Risks

  • Compliance
  • Quality control
  • Large-scale disasters, such as earthquakes
  • Information security
  • Affiliated company controls

In the event a large-scale disaster occurs or other such risk materializes, Furukawa Electric Group will establish Emergency Response Headquarters, headed by the president, and Site Response Headquarters that defines each department's roles and clarifies them ahead of time. We also conduct regular exercises on preparing initial action manuals, stockpiling necessary supplies, and setting up communication structures and systems to confirm people's safety.

BCM (Business Continuity Management) activities

Promotion in obtaining ISO certification

In order to strengthen the business continuity activities, we are actively working to obtain ISO22301 certification, the international standard for the business continuity management systems (BCMS). In addition to the already certified “laser diode products business” (Chiba Works) and “copper wire products business” (Mie Works) and “copper winding products business for motor” (Mie Works), , the “copper and copper alloy products (the original products) business” (Nikko Works) obtained the certification.

Exercise simulating a large-scale earthquake (Mie Works)

Disaster headquarters training at the Head Office

As a part of the Emergency Response Headquarters training for the head office employees, after the safety confirming call training in the initial response training, an industrial doctor lectured on health. Then, an evacuation drill was conducted simulating a fire in the head office building (Marunouchi, Chiyoda-ku). If a fire breaks out, a large number of people will be evacuated from the area, where there is a concentration of office buildings. Considering this, participants expressed opinions about guiding methods and the timing of the roll call. We will examine these opinions to improve our training.

Evacuation guidance training

Furukawa Electric Co., Ltd.

Information Security

Information Security

Information security is considered one of the highest priority risks Furukawa Electric Group has to handle. Therefore we promote various countermeasures through intergroup collaboration by exchanging information among the related divisions, from the perspectives of protecting information systems and intellectual property as well as information management.

Cyber security

In response to the cyber security risks that are becoming more sophisticated and serious year after year, from the end of fiscal 2017, we have been implementing the activities of the “Cyber Security Special Committee” consisting of the departments operating the missioncritical tasks and of the activities of the “Furukawa Electric CSIRT(note 1)” to respond quickly in the event of incident occurrence. The Cyber Security Expert Group conducted an information security risk assessment in accordance with the cyber security management guidelines of the Ministry of Economy, Trade and Industry. In this year’s annual incident exercise, we simulated cyber incidents at the group's overseas affiliates, and inspected the cooperation of business divisions. Furukawa Electric CSIRT promptly responds to major and minor incidents and works to maintain and improve cyber security. In fiscal 2019, Furukawa Electric CSIRT promptly alerted domestic and overseas affiliates to an increasing volume of business email scams, to Emotet2, which had become prevalent in Japan, and to other spam and thoroughly informed them of measures to prevent incidents.

Private information protection

Responding to the 2018 enactment of the General Data Protection Regulation (GDPR) in Europe,3 we reviewed the protection of personal information at domestic and overseas affiliates, particularly at subsidiaries in Europe. Beyond the GDPR, cross-border transfers of personal information are regulated by laws in the state of California in the USA, China and other Asian countries. The departments involved, including the Legal Department, are taking steps to comply with the laws and regulations of the countries.

(note 1) CSIRT: The abbreviation of “Computer Security Incident Response Team”. The team is prepared to cope with the occurrence of cyber incidents.

(note 2) Emotet: Malware that is infected by the Word document files attached to emails that impersonate a real organization or person.
If infected, the email information is stolen, and the emails that look more like real emails are created and scattered, such as, by pretending to be a business partner.

(note 3) EEA: European Economic Area. The EU 28 countries and Norway, Iceland and Lichtenstein.

Furukawa Electric Co., Ltd.

Intellectual Property Risks

Intellectual Property Risks

The Company aims to stabilize the management by strategically creating the intellectual property rights based on the patent portfolio management that grasps the trends in the other companies, also by decreasing the intellectual property risks.

The intellectual property risks are divided into four categories: “Rights infringement risks”, “Counterfeit products risks”, “Contract risks” and “Technology leakage risks” and continuously arousing risk responses. For example, against the “Technology leakage risks”, the following measures are taken: “Technology concealment of the development site and the production site”, “Information maintenance strengthening with the time stamp system”, etc.

We also develop the intellectual risk reduction activity in Furukawa Electric group globally, based on the implementation of the systematic training of Furukawa Electric Group in domestically and internationally, the regular issuance of the newsletters introducing efforts to reduce intellectual property risks, by the President awards for excellent inventions and activities, etc.

Challenges and Future Policy

Following our international business development, risks that Furukawa Electric Group faces are becoming more diversified and complicated each year. We particularly recognize that risks inherent in overseas operations― mainly in emerging countries―and risks from the supply chain standpoint are our top priority issues, and we will be strengthening our countermeasures against them.
Especially, we established an emergency response systen in the Furukawa Electric Group and has been striving to minimize adverse effects of COVID-19 on the Group.  While assessing changes in the environment in the future, we will implement necessary countermeasures in a prompt and flexible manner.

Furukawa Electric Co., Ltd.
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