Risk Management

Basic Concept

Business and Other Risks and Crisis Management

With regard to various risks that may affect our business, Risk Management and Compliance Committee plays a central role in risk management and other activities, and basic principles are established, risks are identified, systems to appropriately manage risks are maintained, and measures against risks are considered. For example, we prepared risk check sheets for each major site in East and Southeast Asia. These activities are supervised by Risk Management and Compliance Committee and the divisions in charge in accordance with their respective manuals and policies. Corporate Auditors and the Internal Auditing Department monitor the risk management status of Techno Associe and its subsidiaries. In particular, in the event of the emergence of a serious risk, a task force shall be established to construct a framework for minimizing loss and damage.

Risk Management System (Compliance Promotion System)

Techno Associe's Risk Management and Compliance Committee ("RC Committee") handles risk and compliance matters across the Group. It carries out activities such as analyzing risks, discussing preventative measures, and issuing directions on specific measures to prevent the recurrence of risks.

Actions Against Natural Disasters

In response to the risk of natural disasters, we have formulated disaster response guidelines based on the basic policies of ensuring safety of human life, stable supply of products and services, compliance, and corporate social responsibility.

The guidelines stipulate the establishment of disaster response headquarters in the event of a major disaster, and in the event of an earthquake with a seismic intensity of 5 or higher, the safety confirmation system automatically sends emails to employees at the seismic center to confirm the safety of themselves and their families as well as damages to their residences. Disaster drills are also conducted on a regular basis, based on disaster scenarios according to the risk of crisis occurrence at each site. At the head office in fiscal 2022, drills consisted of four parts: 1) roll call, 2) tsunami evacuation, 3) reporting, initial firefighting, and evacuation guidance, and 4) evacuation in the scenario of a large-scale earthquake and fire. Furthermore, lifesaving training that includes CPR and the use of AEDs (Automated External Defibrillators) is held, the results of the training and reports from each site are verified, and the guidelines are reviewed.

In preparation for the occurrence of natural disasters, we stockpile emergency supplies, including food for three days per person, at all bases and regularly update them. We have also deployed emergency storage batteries as backup power sources that allow printers used in operation to operate at our headquarters, and emergency magnesium-air batteries, primarily for charging smartphones, at each of our sites as a countermeasure in the event of a power outage.

Information Security

In order to ensure information security, Techno Associe has established Basic Rules for Information Security that are commonly applied throughout the entire company and govern its business activities. Based on these Rules, each division or department has a set of procedures on the handling of confidential information according to the unique nature of its business in order to implement meticulous information control. Information security measures include reinforced security measures for computers, servers, and networks to prevent information leaking from within the company and unauthorized access from outside. All laptop hard disks are encrypted as well, to prevent leakage of confidential information in the event that one gets lost or stolen.

In the telework environment that has been introduced with the spread of COVID-19, VPN and multifactor authentication have been implemented to ensure security against unauthorized access during remote operations. As well, company data can only be copied onto encrypted USB memory devices provided by the company. We also work to boost employees' awareness of information security by providing e-learning courses on information security on a regular basis, as well as training that simulates targeted e-mail attacks.

Secure Export Control

In accordance with the Foreign Exchange and Foreign Trade Act and other laws and regulations, we have established "Secure Export Control Rules" which the Foreign Trade Administration Office follows as it takes the lead in promoting secure export control. All personnel involved in cargo exports and technical assistance are required to participate in e-learning courses related to security export control, and for employees whose work is closely related to importing and exporting, a separate training course is held on assessing the applicability of export laws.