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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.
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.
|Internal factors||External factors||Group's policies|
|Strategic risks||(1) Growth risk|
Risk factors that may impede implementation of the growth strategy that takes into account customer and business environment (human resources and assets)
|(2) Environmental change risk|
Risk factors that result from changes in external environment (politics, economy, laws and regulations, technological innovation, and climate change) and may impede the growth strategy
|Aggressively take risks to pursue growth|
|Pure risks||(3) Operational risk|
Risk factors that result from inadequate or failure of internal process, human resources or systems
|(4) Hazard risk|
Risk factors beyond our control that result from external events and may impede business continuity by causing damage or harm
|Hedge risks to minimize potential losses|
|Group's policies||Prevent risks from occurring||Implement damage control assuming risks may occur|
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.
*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.
In recent years, frequent natural disasters (earthquakes, floods, landslides, tsunamis, volcanic eruptions, etc.) and infectious diseases (COVID-19, 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.
With the "BCM Committee" as the supreme resolution body, HTS Group's BCP is promoting under the following system.
Makes decisions on "overall policies" and "important measures" for BCP promotion. (Frequency: twice a year in principle)
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)
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)
If a disaster occurs, we operate a safety confirmation system that utilizes mobile phones, smartphones, 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.
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.
In Japan, we have BCPs mainly assuming large-scale natural disasters that threaten our business continuity. To enhance BCPs' effectiveness, we had conducted a disaster prevention headquarter training (desktop simulation) systematically in several sites every year, assuming a large-scale earthquake hit, but we had to postpone it in FY2020 to prevent the spread of COVID-19.
Under such circumstance, in March 2021, a site in Ishikawa Prefecture conducted the training safely by thorough infection prevention measures and using online tools. We will share the training expertise amid the pandemic across the entire Group to further improve the effectiveness of BCP. In addition, stockpile deployment, which we had been tackling since FY2017, was completed in FY2020 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.
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.
In FY2020, we postponed BCP caravan to prevent the spread of COVID-19. In FY2021, we will plan to conduct the caravan while considering the situation.
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. We refrained from holding seminars in FY2020 to prevent the spread of COVID-19.
|August||The Head Office of Kyobashi, Tokyo, Japan||On a large-scale earthquake directly under the capital||122|
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.
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.
To prepare for disasters such as large-scale earthquakes that are predicted to occur in the future as well as the torrential rains and typhoons that occur every year, the HTS Group has compiled a collection of natural disaster countermeasures for each of its offices. These are based on lessons learned from past natural disasters and are organized into themes such as "equipment," "stockpiles," and "evacuation."
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.
Date of enactment: July 12, 2006 Regulation No. 853
Date of revision(1): June 1, 2009 Regulation No. 967
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.
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.
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.
The Company shall encourage raising awareness of information security among its officers and employees, and provide education and training on information security.
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.
As part of our efforts to prevent information leakage and maintain a high-level security, 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 other relevant laws in other countries, 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.
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 (FY2020)||100%|
Scope: HTS, domestic/overseas group companies
|Rate of targeted threat emails for simulation trainings opened (FY2020)||9.6%|
Scope: HTS, domestic group companies
As specific measures to prevent information leaks, the HTS Group has implemented common IT measures such as encryption software, secure PCs, access control for electronic documents, ID management and access control through the establishment of an authentication infrastructure, and filtering systems for e-mail and websites. In response to cyber attacks such as targeted e-mails, we are implementing and strengthening various measures such as early detection and proliferation prevention measures in our IT measures as well.
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, 2021)
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.
|Certification Standard||ISO/IEC 27001: 2013(*1)・JIS Q 27001: 2014(*2)|
|Registered Scope||3PL 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|
*1 The ISMS standard established by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC)
*2 The Japanese Industrial Standards Committee (JISC) translates ISO/IEC 27001: 2013 into Japanese and publishes it as a national standard (JIS).
In FY2020, there were no complaints filed for the violation of customer privacy or the loss of customer data.
We provide the data of Number of disaster response training implemented, information security and so on.