Risk management system

Risk management system

We have established internal rules, such as risk management rules and disaster prevention rules, and have established a risk management system, so that if we face or predict a serious risk, we can take prompt and appropriate action and ensure sound business operation.

We have reviewed our management structure in line with the in-house company system we adopted in April 2017. As part of the review, in May 2017, we changed the name of our organization that considers matters related to large earthquakes, from the Earthquake Preparedness Committee to the Earthquake Preparedness Promotion Committee, and we improved the level of practice and implementation.

We also reviewed our Companywide Disaster Preparedness Organization and clarified its activities in chronological order, from (1) Earthquake occurrence to initial response, to (2) After initial response to recovery.

Risk management education

We have newly developed a curriculum for "risk management" designed for training of all job classes, where we explain how risk management is positioned and emphasized in CSR and actual cases of crisis at Aichi Steel to heighten employees' risk awareness and ensure they understand what to do to prevent crisis occurrence/recurrence and initial actions to take when a crisis occurs.

As a result of the accident on January 8, 2016, we have declared January 8 to be Start Over Day at Aichi Steel to raise awareness of our commitment, confirmed by everyone at Aichi Steel, to preventing such an accident from recurring.

Disaster prevention measures

The Earthquake Preparedness Promotion Committee (name changed May 2017) has systematically implemented disaster prevention measures based on the action roadmap established in March 2012, and from the key perspectives of (1) prioritizing human life, and (2) business continuity (BCM). The committee also considered damage that occurred as a result of the April 2016 Kumamoto earthquakes, identified some new concerns, and reviewed its disaster prevention plan.

The main actions implemented by each subcommittee during fiscal 2017 are detailed below.

Review of earthquake preparedness committee

Human Safety Subcommittee

1. Measures to ensure food, clothing and shelter for evacuees

  1. Securing food, clothing and shelter for persons helping with recovery efforts
    • Adoption of water purification system using motorized pump: Chita Plant (securing water for daily living from company water tanks, etc.)
    • Installation of manual water purification system: Kariya, Higashiura, Gifu and Seki plants (as above)
    • Installation of cooking appliances: Canteens and dormitories at each plant

Facility Safety Subcommittee

1. Measures to ensure safety of escape routes

  1. Implementation of safety measures
    • Attachment of bolsters to shelving: Forging Plant (planned for completion in September 2018)
    • Installation of crane escape equipment (as above)
    • Stabilizing equipment: Kariya, Higashiura, Gifu and Seki plants (completed)

2. Measures to minimize damage to buildings and equipment, etc.

  1. Additional considerations after Kumamoto earthquakes (April 2016)
    • Identification of new potential risks (crane running off its tracks, sliding shelves falling from racks)
    • Clarification of equipment requiring emergency stop systems
      (confirmation of emergency stop procedures and times required)
      → Additional automatic shut-down mechanism to speed up stop times (1 unit)

Production Recovery Subcommittee

1. Liquefaction measures

  1. Measures implemented, with one remaining (coordination with neighboring company completed, with full implementation planned for October 2018)

Other actions

1. Cooperation with domestic subsidiaries

  1. Aichi Steel Group Disaster Prevention Liaison Committee (meeting held July 2017)
  2. Multiple contact methods acquired (4 companies installed teleconferencing systems)

2. Cooperation with domestic sites

  1. Installation of teleconferencing systems with all domestic sites completed (all plants and offices)

3. Identification of issues through companywide emergency drills

  1. Planning improvements during fiscal 2018