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Risk Management

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Basic crisis management policies

According to OMRON’s Crisis Management Rules (established in 1999), a "crisis" is defined as any event that has or may have a significant negative impact on the continuation of management and business activities by OMRON Corporation or the OMRON Group, or on the company/group’s resources; or any event that does or may harm the social credibility (value) of the company. The rules require all employees to quickly take necessary countermeasures to minimize damage in the event of a crisis, and to continue or restore business operations as early as possible. Employees are also required to take measures to prevent a recurrence whenever a crisis occurs.

Based on the Crisis Management Rules, OMRON also established Disaster Contingency Planning Rules. These rules stipulate the setup of a Group-wide emergency task force headed by the President, the basic route for emergency contact, and other matters related to initial response to disaster.

OMRON is striving to instill the Crisis Management Rules among employees by organizing simulation drills to assist them in preparing for possible crises. The company also provides training sessions for emergency risk communication. In fiscal 2009, OMRON expanded these training programs to cover all Group companies in Japan. The OMRON Group initial emergency response manual was also prepared by referring to countermeasures taken in past cases, and applying knowledge gained through drills. This manual provides a helpful reference for the emergency task force in the event of a crisis.

Basic policies
  1. Place human life and personal safety at the top of the list of priorities.
  2. Give high priority to legal/regulatory compliance and respect for social rules.
  3. Minimize the negative impact of crises on customers and society.
  4. Curtail the negative impact of crises on OMRON's business and strive to ensure smooth continuation and quick restoration of business operations.
  5. Take necessary measures in a sincere and consistent manner.
  6. Disclose information appropriately and remain accountable.

Crisis management for the Great East Japan Earthquake

Following the massive earthquake and tsunami that hit the northeastern part of Japan on March 11, 2011, a task force was set up in conformance with the OMRON Crisis Management Rules and Disaster Contingency Planning Rules. The purpose was to formulate and implement emergency plans to support quick recovery by uniting the power of the OMRON Group as a whole.

Although the earthquake/tsunami caused only limited direct damage to OMRON Group offices and facilities, the disaster made it difficult to procure parts and raw materials sourced from affected areas. This led to suspended production for some products or declines in factory operational rates.

In light of the devastation caused by this recent disaster, a review of the business continuity plan (BCP) is now underway as a high-priority task of management. The review includes correcting excessive concentration on limited sources for some parts.

For the Emergency Contingency Planning Rules as well, a revision is being considered with the aim of building a more effective and practical Group-wide crisis management system.

Establishing the Global Crisis Management Rules

The countermeasures formulated in accordance with the OMRON Crisis Management Rules have mainly targeted OMRON Group sites in Japan. However, in fiscal 2010 OMRON worked on drawing up Global Crisis Management Rules that stipulate globally applicable levels of crises including disasters and product accidents, and reporting routes. The global rules are scheduled to be completed and take effect by the end of fiscal 2011.

Formulating a pandemic influenza response plan

To prepare for the outbreak of a highly virulent new influenza virus with high fatality rates, in fiscal 2010 OMRON drew up a highly virulent pandemic influenza response plan in line with government-issued action guidelines. Targeting all OMRON Group employees throughout the world, this plan includes guidelines for countermeasures and specific action programs. These were explained to all Group employees during the year.

In fiscal 2010, OMRON also completed an infection status management system intended to track the infection status of employees and their families. The system is ready for operation in preparation for a potential spread of infection.

Conducting emergency and evacuation drills at all worksites

In Japan, OMRON annually conducts drills and safety registration/confirmation training for the possible occurrence of an earthquake with a seismic intensity of 6- or greater. Emergency and evacuation drills are also organized at each worksite.

Moreover, a system is in place that allows employees to record and confirm their own safety and that of their families via mobile phone or the Internet. The system is activated in the event of a disaster with the potential for damage over a wide area.

After the Great East Japan Earthquake, which caused devastation over a very wide area, OMRON realized the need for organizing drills to prepare for such cases of unimaginable levels of damage. Specifically, OMRON will consider revisions to the planned countermeasures by taking into account the potential for enormous wide-area damage from probable linked earthquakes in the Tokai, Tonankai and Nankai areas.

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