Risk Management

Basic Principles and System for Risk Management

While Komatsu continues to make efforts to improve corporate value, it recognizes the problems related to compliance, in particular, environment, product quality, accidents, information security, and other matters, as major risks for continuous growth and is thus implementing the following countermeasures.

  • Komatsu has established Risk Management Rules to correctly recognize and manage risks, for which the company has appointed personnel in charge of individual risks, further promoting the build-up of a solid foundation for risk management.
  • Komatsu has established a Risk Management Committee to devise risk management policies of the Komatsu Group, evaluate risk measures in place, and take control of risks when they surface. The Risk Management Committee regularly reports its reviews and activities to the Board of Directors.
  • Komatsu will establish an emergency headquarters when serious risks surface, and work to minimize damage(s) and implement appropriate measures.

Implementing a BCP* for Komatsu

Komatsu has formulated a BCP to carry out major operations without suspension, or restore them after only a short suspension, should a disaster or accident occur.

In FY2006, the company conducted a BCP simulation, assuming an earthquake occurring directly beneath the Greater Tokyo Metropolitan area, a disaster said to be highly likely. The simulation aimed to enable employees to take correct actions in the event of a real emergency, particularly through reinforcing the system dealing with the initial stages of response. Moreover, in order to reduce potential earthquake damage, the company installed an earthquake warning system at the Head Office building, which sounds an alarm just before a large vibration hits, and then held emergency drills.

*Business Continuity Plan: A plan that systematizes major operations across the entire company such that they can continue without suspension or can be brought back after only a brief suspension.

Promoting Risk Management throughout the Group

To reinforce the risk management structure across the Group, Komatsu is working to enhance the level of management at each Group company through explanatory meetings and study sessions on risk management and BCPs.

Additionally, Komatsu is strengthening its Group-wide system for communications in times of emergency by introducing tools such as an emergency contact and safety confirmation system and broad-area wireless devices.

Consolidating Information Security

With the Information Security Committee established in 2005 at the core, Komatsu is developing a structure for information security for the entire Group and implementing various control measures.

In FY2006, Komatsu distributed an Information Security Guidebook to all employees in order to raise their consciousness of thorough compliance to rules. With this guidebook as a base, the company engaged in awareness-raising activities such as explanatory sessions and education and training (e-Learning) for every employee at its business units.