Risk Management Initiatives
Basic Stance on Risk Management
CTC conducts centralized risk management of common group-wide risks* using unified group-wide risk management mechanisms (including the discovery and identification, analysis and evaluation of risks and the formulation of risk countermeasures). In addition to this, we also conduct damage limitation and recovery activities-and preemptive initiatives envisaging possible damage-for major incidents that could dramatically lower our corporate value, in the form of crisis management activities. We evaluate the effectiveness of these risk management mechanisms and the efficiency of our risk management activities on a timely basis, and take appropriate steps to rectify them as and when necessary.
By ascertaining risks from an integrated, group-wide, management-oriented perspective, managing them by rational and appropriate methods, and seeking to minimize losses and maximize revenues, we aim to improve our corporate value.
- Common group-wide risks: major risks at the level that corporate management should become involved. The major group-wide risks are as follows:
Project quality risks (development & infrastructure building), foreign exchange rate fluctuation risks, client system failure & accident risks, information security risks and natural disaster risks, etc.
Risk Management Structure and Risk Management Activities
CTC has established a Risk Management Committee, under the supervision of a Risk Management Supervisor (designated by the President & CEO), with the aim of driving group-wide risk management activities and sharing necessary information throughout the Group. The Risk Management Committee formulates group-wide policies in relation to group wide risks, assesses and identifies various risks, and conducts regular monitoring.
Through our risk management activities, we have built a structure for reporting to the Risk Management Committee in the event that major risks should become apparent.
Roles of the Risk Management Committee (and Risk Management Supervisor)
- Formulation of group-wide risk management policies, yearly plans and preventive rectifying measures
- Overall management of risk management based on periodic risk analyses
- Overall management of risk management activities as chairman of the Risk Management Committee, focused primarily around the running of the Committee
- Regular reports to the President & CEO (Management Committee) in relation to the above
BCM (Business Continuity Management) Initiatives
We currently have BCM countermeasures in place against earthquakes, outbreaks of new strains of influenza, and serious system failures. For earthquakes, we have formulated a BCP (Business Continuity Plan) that focuses primarily on our three most critical services (maintenance, operation and data center services) and our head office functionality. For new strains of influenza, we have formulated separate BCPs on a by-organization basis.