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    Risk Management

Risk Management

  • Risk Management
  • Conducting Business Freely and Fairly
  • Anti-Corruption Initiative
  • In-House Legal Training
  • Export Control
  • Business Continuity Basic Plan
  • Objectives and Results of Integrated Management System [Risk Management]

Risk Management

Managing risk is a major challenge for every company, as risk factors can impede goal achievement within an organization. When an incident or accident occurs that impacts a company’s operations and causes the company to fall behind its objectives, the cost and the labor required to deal with it can be enormous, particularly if the company is slow to respond. In such cases, the critical factor in a successful crisis management approach is a well-focused initial response based on sound information.

At HORIBA, we adopted our Group Risk Management Regulations in August 2007 to strengthen our risk management system. We created major classifications of risks to operations, risks to development and manufacturing, risks to sales, and risks to financial affairs. We stipulated a management system for addressing these risks and a responsibility system that will manage crisis situations whenever they occur.

The HORIBA CSR Promotion Committee undertakes the responsibility of discussing and approving the tasks required to promote risk management and risk countermeasures. We maintain a system for implementing precise, responsible actions whenever we face a challenge. Moreover, we provide periodic awareness campaigns and training programs so that all employees of the HORIBA Group— from top management to the responsible personnel—remain fully aware of their specific responsibilities.

Conducting Business Freely and Fairly

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.

Anti-Corruption Initiative

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.

In-House Legal Training

HORIBA Group began providing in-house legal training in 2001 in order to help our employees familiarize themselves with the relevant compliance knowledge and approaches that are required for their daily work. Since 2018, we have stepped up legal training programs for each department in line with a five-year training plan so that the members of individual departments can learn about such knowledge and approaches in a comprehensive and effective manner.

Export Control

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.

Business Continuity Basic Plan

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.

1. Basic Thinking

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.

2. Response Policy

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.

3. Extent of Application

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.

4. Organizational Structure

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.

5. Decisions on Continuing Business Operations

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.

6. Specific Countermeasures

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.

Objectives and Results of Integrated Management System [Risk Management]

2021 IMS Objective and Result for HORIBA Group in Japan

CategoryObjectiveItem/ValueResultAction
Risk ManagementIntegration of business activity and risk management systemInformation 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

2021 IMS Objective for HORIBA Group in Japan

Objective:Become a trustful solution provider by corresponding to changes

Group CategoryObjectiveItem and Value
RiskIntegration of business activity and risk management systemInformation 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/

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