Compliance and Risk Management
Basic Policy
Promoting compliance and risk management globally through integrated risk management initiatives
Based on OMRON Group Rules for Integrated Risk Management, the OMRON Group promotes compliance and risk management at the global level. Specifically, OMRON identifies and analyzes global compliance and other Group-related risks, specifying significant risks and devising measures to deal with them.
Should a significant risk occur, the Crisis HQ will be set up to deal with that risk through an organizational approach. To quickly assess frontline risk information, the risk reporting system and whistle-blower system are in operation.
Integrated Risk Management Policy
OMRON’s basic policies for integrated risk management are defined in the Basic Policy on Maintenance of Internal Control System resolved by the Board of Directors as follows:
- 1. We will integrate and carry out risk-related activities from a global perspective for the purpose of securing the continued existence of the companies and enabling them to achieve their targets and fulfill their corporate social responsibilities.
- 2. Based on the OMRON Group Rules of Integrated Risk Management, we will endeavor to avoid, reduce, and transfer losses by collecting risk information, conducting risk analyses, and implementing countermeasures against risks.
- 3. We will identify critical risks to the Group and enable Groupwide responses through the Executive Council.
- 4. In a time of crisis, we will make reports in accordance with established procedures and form response teams necessary to address the crisis.
Integrated Risk Management Framework
- Basic Policy
- Integrated Risk Management Framework
- Initiatives
- Whistle-blower system
Establish Global Promotion Structure
At the OMRON Group, the Corporate Ethics and Risk Management Committee is tasked with promoting compliance and risk management in an integral manner. Consisting of members from the OMRON global headquarters and business companies as well as regional headquarters overseas, the committee deliberates on measures on a quarterly basis for implementation.
A risk manager in charge of compliance and risk management is in place at each Group company across the world. These risk managers use OMRON’s global network to exchange risk information and quickly devise and take action in response to changes in internal and external environments by combining the efforts of frontline staff and the management team.
The progress in risk management, including initiatives to address significant risks, is regularly reported to the Executive Council and the Board.
Initiatives
Specifying the most significant risks and strengthening response to risks
In fiscal 2016 as well, the department in charge of dealing with risks was selected and countermeasures were taken in a well-planned manner.
Specifically, the most significant risks identified included business continuity, violation of international laws (bribery, etc.), and information/IT security. The next significant risks included employee safety, internal fraud, conformance with the Electronic Industry Citizenship Coalition, occupational health and safety, and global product safety regulations.
As for business continuity risks, for example, OMRON reviewed its business continuity plan, and restructured and updated procedures for reporting and responding in the event of a crisis, in order to further strengthen risk response capabilities.
As for violation of international laws, the OMRON Group periodically offers training for employees and executives based on the OMRON Group Rules for Ethical Conduct, which specifies action guidelines for legal and regulatory compliance. This is intended to promote business practices with fairness and integrity across the OMRON Group. In fiscal 2016, the Corporate Ethics Month activities, which had formerly been conducted in October in Japan, were rolled out globally. Activities included delivery of messages from the OMRON Group top management to managers and employees across the world, workplace training, and distribution of corporate ethics cards.
Recently, there has been an alarming increase in the number of cyber-attacks occurring worldwide, accompanied by increasingly strict laws related to personal information protection. To deal with these information/IT security risks, the OMRON Group has launched an effort to restructure its information security management system globally. In fiscal 2016, OMRON took measures to comply with the revised Act on the Protection of Personal Information in Japan as well as related laws outside Japan. The company is also offering training on data security and privacy protection in a well-planned manner.
Whistle-blower system
- Basic Policy
- Integrated Risk Management Framework
- Initiatives
- Whistle-blower system
Implementing whistle-blower system globally based on fair treatment and guaranteed protection of whistle-blowers
The OMRON Group implements a whistle-blower system as the framework for monitoring ethical conduct across the Group.
Whistle-blowers are accepted widely from OMRON Group executives, employees and temporary staff, as well as their families and suppliers. Besides handling whistle-blowers at a dedicated department within the company, an external law firm is also commissioned to accept reports from whistleblowers. Outside Japan as well, whistle-blower systems are available at major sites in the regions of the Americas, Europe, Greater China, Korea, and Asia, and are implemented in the same manner as in Japan.
Regarding the implementation of the whistle-blower system, the internal regulations clearly state strict maintenance of security and protection of whistleblowers from any detrimental treatment. OMRON also informs employees of the availability of the hotline through bulletin boards and during employee training.
In fiscal 2016, a total of 36 whistle-blowing reports were made in Japan, and 28 abroad. This shows steady global penetration and proper functioning of the whistle-blower system.
