The HORIBA Group builds risk management system, called the "Three Lines Model," which consists of the following:
First Line: Five business segments (provision of products/services to clients) are responsible for proactive risk management
Second Line: Management departments such as the Corporate Control Department, Accounting Department, Legal Department, and General Affairs Department are responsible for risk monitoring functions
Third Line: The Group Internal Audit Office, which is the internal audit department, performs an independent verification function of risk management
Individual business risks in Japan and overseas are regularly ascertained by five business segments and management divisions. Particularly important matters are submitted to the Board of Directors, the Operations Committee, the Management Committee, and the global meetings which brings together the management of overseas bases, as appropriate, to share information with top management and make timely management decisions.
In addition, the Internal Audit Department regularly monitors the status of risk responses and the effectiveness of the risk management system in its five segments and management divisions from an independent standpoint, and reports to the Board of Directors and the Audit & Supervisory Board as necessary.
We have established the Group Risk Management Basic Rules with the aim of strengthening our risk management system. The Company broadly classifies risks in each segment, risks related to business, risks related to development and manufacturing, and risks related to finances, and defines a management system for these risks and a system of responsibility in the event of a crisis. In addition, the HORIBA Group Risk Management Committee has been established with major Group companies in Japan as members.
HORIBA Group takes actions for appropriate organization and technical measures globally under established a personal information protection policy and IT security policy for the importance of managing and protecting employee and customer information.
Specifically, we conduct information security education every year for officers, employees, temporary staff, and others in an effort to raise security awareness. In addition, we take appropriate measures of safety management according to risks through security risk assessments.
Since 2021, the HORIBA Computer Security Incident Response Team has been working on developing response procedures with related departments and Group companies in order to minimize damage after an incident occurs.
HORIBA Group cares for the well-being of the global environment and local communities and places great importance on the relationships of cooperation and trust with business partners based on fair trade. In business, we make sure that we comply with competition laws/regulations in relative jurisdictions. We provide relevant divisions with periodic training programs on compliance in order to prevent cartels, bid-rigging, or any other practices impeding free competition.
HORIBA's top management has made it clear that, “in the spirit of “Open and Fair,” we absolutely denounce any form of corruption and morally questionable sales that may be earned through payment that goes beyond proper consideration”. True to this stance, we are making all-out efforts to prevent corruption on a global scale. As part of this initiative, all HORIBA Group companies throughout the world make it a rule to validate certain payments before they make them, organize periodic training programs for relevant divisions, and conduct periodic audits.
HORIBA Group has been providing in-house legal training since 2001 in order for employees to learn and acquire the relevant legal knowledges, skills and ideas that are required for their daily work.
While considering the needs of each department and the business situation surrounding HORIBA, HORIBA Group continuously provides in-house legal training for certain department and employee to effectively learn these knowledge, skills and ideas.
In line with the Export Control Compliance Program (CP) accepted by the Ministry of Economy, Trade, and Industry, HORIBA Group in Japan conforms to international security export controls, which have been tightened, to prevent its products and techniques from being used by countries and terrorists that pose threats to the safety of the international community. More specifically, HORIBA Group checks whether or not the Export Control List applies to items and techniques that HORIBA Group exports directly or indirectly; it also checks and examines its customers and their business purposes. Also, to strengthen internal security export controls, HORIBA Group holds regular meetings of the Export Control Committee, improves corporate educational programs, and conducts regular internal audits to maintain and manage the control system. HORIBA, Ltd., as an Authorized Economic Operator (AEO) Exporter defined in the AEO program, strives to enhance the security export control system at its group companies the world over. To this end, we at HORIBA Group’s headquarters engage in a wide variety of activities, including the screening of transactions across the globe, in a bid to promote good governance.
In order to minimize the impact in emergency on the Group's business and to fulfill our social responsibilities, the HORIBA Group has formulated the following basic business continuity plan.
The HORIBA Group, even upon the occurrence of large-scale disasters or other emergencies, shall strive to minimize the impact on its customers, vendors and other concerned parties, carry on its business activities to the greatest degree possible and resume operations at an early point in time, in order to work through its products and services to supply people with health, reassurance and safety.
Upon the occurrence of large-scale disasters, responses shall be mounted with the foremost priority of maintaining safety for the lives of employees and their families and all other persons concerned with the business activities of the HORIBA Group.
Large-scale disasters, etc. shall refer to earthquakes, wind and flood damage and other natural disasters, terrorism, war and other social disruptions, suspension of electrical power, communications, information systems and other social infrastructure, epidemics of new strains of influenza and other infectious diseases and other corresponding situations, with this Plan to be utilized upon suspension of the business activities of the HORIBA Group or the Group’s customers, vendors and other concerned parties, or the occurrence of equivalent situations.
Upon the occurrence of large-scale disasters, etc., a HORIBA Group Risk Task Force, headed by a HORIBA, Ltd. board member who is appointed by its President & COO, shall be formed immediately, with necessary personnel summoned from all HORIBA Group companies. The Task Force shall confirm the safety of employees and their families; gather information on the status of customers, vendors, other concerned parties, infrastructure conditions and other details; make decisions on continuing business activities; discuss countermeasures; issue announcements both internally and externally; and take other pertinent steps.
Upon suspension of the HORIBA Group’s business activities, steps shall be taken to restore and continue operations with the priority on those related to human life and social infrastructure. In this regard, the same types of standards shall also be maintained in cooperating in restoration efforts upon the suspension of the business activities of the HORIBA Group’s customers, vendors and other concerned parties.
With regard to specific business continuity countermeasures, the experiences and lessons of large-scale disasters occurring in the past (the Great Hanshin and Awaji Earthquake, Great East Japan Earthquake, etc.) shall be effectively applied, with each separate division compiling documents detailing its own roles, countermeasures and other steps to be adopted.
2021 IMS Objective and Result for HORIBA Group in Japan
|Risk Management||Integration of business activity and risk management system||Information Security: Zero Incident||〇||Conduct information security education and enlightenment activities|
|Business Continuity: Improve resilience from the effect of BCMS operation||◎||Conduct information security education and enlightenment activities|
|Supply Chain Management: Reconstruction of risk assessment||◎||Create a list of component risk countermeasures, assess risks for each business partner, and consider countermeasures|
2022 IMS Objective for HORIBA Group in Japan
Objective：Become a trustful solution provider by corresponding to changes
|Group Category||Objective||Item and Value|
|Risk||Integration of business activity and risk management system||Information Security: Zero Incident|
|Business Continuity: Improve resilience from the effect of BCMS operation|
|Supply Chain Management: Reconstruction of risk assessment|
Details of Integrated Management Systems is https://www.horiba.com/en_en/company/social-responsibility/horibas-csr/integrated-management-system/