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Hitachi

Hitachi Transport System

Risk Management

The HTS Group strives to manage risks that are difficult to foresee and require company-wide countermeasures by sharing risk recognition, visualizing risks, selecting priority risks and examining relevant measures, with an aim to increase corporate value and achieve sustainable growth.

Definition and Classification of Risks

The HTS Group defines risk as "the influence of uncertainty about our objectives and the possibility to influence the achievement of our strategy and business goals when an event occurs."
We classify recognized risks as follows based on their type (strategic or pure) and factor (internal or external) to select "priority risk" that are highly likely to occur and have material impact and focus on discussing countermeasures against them.

recognized risks, strategic risks, pure risks, internal factors, external factors

Risk Management System

The HTS Group manages risks by appointing a Risk owner*1and a Risk manager*2for each risk factor. When creating an annual budget, risk items are identified and their quantification and responses are discussed, and risk owners or risk managers report the status of relevant risk items to the Executive Committee and also to the Board of Directors and the Audit Committee when necessary, in order to ensure effectiveness of Enterprise Risk Management (ERM).

*1: Risk owner: A person in charge of discussing risk responses and monitoring/ supervising the implementation of measures.

*2: Risk manager: A person in charge of addressing risks in cooperation with a Risk owner and promptly implementing relevant measures.

Risk Factors and the Implementation Status of Our Measures

  1. Growth risk(PDF format, 256Kbytes)
  2. Environmental change risk(PDF format, 295Kbytes)
  3. Operational risk(PDF format, 268Kbytes)
  4. Hazard risk(PDF format, 227Kbytes)

*The matters that may have a significant influence on investors' decision include the following. However, those listed below only include major risks, and there are other risks that are not foreseeable or specified but require company-wide measures. Any of those risk factors may have an impact on HTS's financial results and financial position.

Disaster Risk Measures

BCP promotion

In recent years, frequent natural disasters (earthquakes, floods, landslides, tsunamis, volcanic eruptions, etc.) and infectious diseases (new influenza, etc.) have not only threatened people's lives but also have had a great impact on corporate activities. Under such circumstances, for the logistics industry, BCP is not a mere plan to continue business, but preparation to work toward and contribute to the restoration of medicines, food, and social infrastructure that is the basis for life in the affected areas. We believe our social mission is to protect people's lives. Protecting a company's business also protects the livelihood of its employees. Therefore, the HTS Group has decided on a BCP (Business Continuity Plan) policies and measures, and implemented measures to fulfill the responsibilities of the entire group at the BCM Committee (Business Continuity Management Committee) chaired by the President and Representative Executive Officer in order to provide high-quality services to customers and protect the livelihood of employees without interrupting business even when risks occur.

BCM (Business Continuity Management) Structure/ BCP promotion structure

With the "BCM Committee" as the supreme resolution body, HTS Group's BCP is promoting under the following system.

Business Continuity Management Structure,BCM

BCM Committee

Makes decisions on "overall policies" and "important measures" for BCP promotion. (Frequency: twice a year in principle)

All HTS Group BCP Promotion Board and HTS Group Disaster Response HQ

Targeting risk managers at the head office, Sales Divisions, and Group companies, we disseminate company-wide policies and measures decided by the BCM Committee and discuss BCP promotion. (Frequency: twice a year in principle)

Group Company BCP Promotion Staff Meeting

Meetings are held regularly as a place to educate persons in charge and exchange opinions with consciousness of the spread of BCP measures into the sites of each Group company. (Frequency: twice a year in principle)

Safety confirmation

If a disaster occurs, we operate a safety confirmation system that utilizes mobile phones and personal computers as a mechanism to quickly carry out a safety check of HTS Group employees. In addition, for staff on overseas business trips or based overseas, we send out global alerts (overseas safety information) in a timely manner and also provide international safety education in order to deepen awareness of any risks.

Strengthen BCP system

For prompt restoration and continuation of our group business at the time of a large-scale disaster, we conduct trainings to enhance coordination between disaster prevention headquarters of the head office, management headquarters, and group companies on a regular basis, and we are also establishing emergency contact systems with overseas group companies.

Disaster prevention training in Japan

In Japan, we have BCPs mainly assuming large-scale natural disasters that threaten our business continuity. To enhance BCPs' effectiveness, we conducted a disaster prevention headquarter training (desktop simulation) assuming a large-scale earthquake hit Kanagawa area in August 2019.
However, we decided to postpone the training scheduled for March in the Hokuriku area and at Hitachi Collabonext Transport System Co., Ltd. to FY2020 due to the impact of the spread of COVID-19. In addition, stockpile deployment, which we had been tackling since FY2017, was completed in FY 2019 at all major bases in the domestic group, and together with the deployment of six extra warehouses nationwide that will serve as alternative bases in the event of a disaster, we are trying to maintain the regional logistics functions.

Training session1
Training session2

Strengthening system in overseas

Training session in Indonesia

In overseas, the HTS Group sends BCP Caravan from Japan to our major sites in North America, Europe, China, and other parts of Asia to establish and develop risk management system.
In addition, we gather information on developments such as large-scale-disasters, terrorism, etc., from information sources such as the Foreign Ministry as well as major communications companies, to alert our staff stationed or traveling overseas of imminent dangers. At the same time, we have instituted emergency contact systems based on the information from our overseas locations.
Although a BCP Caravan was planned to be implemented in India in FY2019, it has been postponed to FY2020 or later due to the spread of COVID-19.

Disaster prevention seminar

We hold yearly seminars, inviting outside lecturers with the aim of fostering crisis awareness in each employee regarding disasters, deepening their understanding of disaster countermeasures, and improving their responsiveness.

Held disaster prevention seminar results (domestic)

FY2019PlaceThemeAttendees
AugustThe Head Office of Kyobashi, Tokyo, JapanOn a large-scale earthquake directly under the capital122

Implementation of BCP education and e-learning at rank-based group training

We provide various types of education in order to broaden understanding in employees of the importance of business continuity. In addition to providing the introductory education to new employees, education for managers, and prior to start of traveling education for overseas trainees, we also conduct e-learning for all employees each year.

Dissemination of behavioral standard in the event of a disaster

Emergency Handbook

By renewing the "Disaster Response Card" that describes what actions to take in the event of a disaster and distributing it to all employees as an "Emergency Handbook," we are working to ensure thorough awareness of disaster response.

Tightening of Information Security

We understand the importance of properly storing and managing both customer information and internal information. As a group, we work to maintain and raise our security level through the establishment of regulations, employee education and training as we strive to deliver customers with a safe, reliable and secure logistics service.

Information Security Basic Policy

Date of enactment: July 12, 2006 Regulation No. 853
Date of revision(1): June 1, 2009 Regulation No. 967

1. Formulation and continuous improvement of information security management rules

The Company recognizes the information security efforts are important issues for management and business, and has formulated Information Security Management Rules that comply with and conform to laws and regulations and other norms. Furthermore, the Company shall establish and steadily put into practice a company-wide information security management system. In addition, the Company will maintain and continuously improve organizational, human, physical and technical information security.

2. Protection of information assets

The Company shall take appropriate measures to protect information assets from threats such as loss, leaks, unauthorized access, alteration and destruction of information assets handled by the Company.

3. Compliance with laws and norms

The Company shall comply with information security-related laws and regulations and other norms. Additionally, the Company shall ensure that its Information Security Management Rules conform to these laws and regulations and other norms.

4. Education and Training

The Company shall encourage raising awareness of information security among its officers and employees, and provide education and training on information security.

5. Accident prevention and response

The Company shall strive to prevent information security incidents, and should any incident occur, the Company shall promptly take appropriate measures, including measures to prevent recurrence.

Personal Information Protection

The information entrusted to us from our customers includes a large quantity of personal information. The HTS Group has established a "Privacy Policy" allowing us to take the appropriate action for the protection of personal information.

Promotion structure for personal information protection/information security (as of April, 2020)

Personal information protection, information security structure

Personal information protection/Strengthening information security initiatives

Internal rules are revised in response to changes in social conditions and the status of overseas personal information protection, and the management and operational status of personal information protection and information security is checked accordingly.
We are also striving to further strengthen governance across the HTS Group, working on education and simulation trainings for targeted threat emails for all employees, responses to GDPR* in EU and personal information protection in Japan and overseas.

*GDPR (General Date Protection Regulation): A regulation established by EU to protect personal data and privacy, which imposes severe restrictions on the handling of personal data (processing and transfer) by companies and organizations.

Education and training for personal information protection/information security

In addition to e-learning for all employees, we provide rank-based group trainings for information security education targeting new employees, mid-career employees, and assistant managers/ managers.
Simulation trainings to cope with targeted threat emails are also conducted every year, aiming for ensuring company rules and raising their awareness about personal information protection and information security.

Attendance rate of information security training course (FY2019)100%

Scope: HTS, domestic/overseas group companies

Rate of targeted threat emails for simulation trainings opened (FY2019)5.0%

Scope: HTS, domestic group companies

Third-party certification

Privacy mark

We are certified as an enterprise with a system of effective measures to protect personal information. This gives us the right to display the Privacy Mark. Some subsidiary companies are also certified.

Privacy mark acquisition status at
HTS and its domestic group companies
(as of March 31, 2020)
12
companies

Privacy Mark

Information security management system (ISMS)

With increased needs for organizations to establish solid management system for information security, we are certified according to the ISO/ IEC 27001 that accredits our security management level is above standard.

ISMS

Status of ISMS certification

Certification StandardISO/IEC 27001: 2013(*1)・JIS Q 27001: 2014(*2)
Registered Scope3PL Sales Promotion/3PL System Design & Development/3PL Logistics Center Operation & Management
(for medical/pharmaceutical/telecommunication device businesses)
First Registered Date'December 22, 2005
Valid Until'December 21, 2023
Certification office

*1 The ISMS standard established by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC)

*2 ISMS Conformity Assessment Scheme by ISMS-AC(ISMS Accreditation Center).

Customer privacy

In FY2019, there were no complaints filed for the violation of customer privacy.

Risk Management Data

We provide the data of Number of disaster response training implemented, information security and so on.

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