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Business Continuity (BCP), Risk Management

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Prevent and mitigate operational risks
We anticipate, prevent, and mitigate risks, but when crises arise, we protect our people, property, and profits.

Management Structure

The Bridgestone Group broadly divides risks into two categories: business strategic risks, which are related to management decision-making, and operational risks, which are related to daily operations. The former is handled through business operations, while the latter is handled by the Chief Risk Officer (CRO), who has overall responsibility for managing risks and reports to the CEO.

Bridgestone promotes comprehensive activities to appropriately manage risks common to the Group, with consideration for the scale and characteristics of each site and Group company. Through the dual promotion of Group global unified activities and autonomous risk management activities, Bridgestone identifies, prevents and mitigates risks, and formulates Crisis Management and Business Continuity Plans to enable appropriate support for the continuation or resumption of business.

In 2016, under GCEC, the BCP, Risk Management WG was established, comprising members from each SBU*1. The WG manages and updates the Bridgestone Group’s Global Risk Management Policy and oversees the company’s risk management, crisis management, and business continuity systems. To this end, the WG is undertaking five key initiatives: Refine and Standardize the Annual Risk Identification Process Across the Bridgestone Enterprise; Create a Global Definition and Framework for Crisis Management and Business Continuity; Enhance the Risk Management Role of Emergency Action Reports; Develop an Enterprise Travel Risk Management Program; and Formalize the Process for Cross-SBU Support in Crisis Management. The WG’s deliberations and efforts are guided by ISO 31000, the international standard for risk management.

  1. Strategic Business Unit

Activities under Normal Circumstances

The Bridgestone Group promotes the appropriate management of important risks common for the Group, as well as carefully crafted activities that consider the scale and unique characteristics of each business office and subsidiary through Group Global unified activities and autonomous activities at divisions and SBUs.

In terms of unified activities, we began identifying risks at the Bridgestone Group (excluding companies in which Bridgestone has an equity stake of 50% or less) in 2009. From then on, we select important risks common for the Group from among those identified and promotes unified Group-wide countermeasures every year.

Emergency Responses

The Bridgestone Group develops Business Continuity Plans (BCPs) to take measure to important risks of the countries and regions with the aim of ensuring immediate initial responses to emergencies, as well as business continuity and rapid recovery in the event of disaster. When incidents occur, the Bridgestone Group has the immediate reporting system to CRO. And the crisis management organizations are activated to respond to the incidents systematically.

Earthquake Countermeasures

Emergency countermeasure organization drill in Kodaira

Emergency countermeasure organization drill in Kodaira

The Bridgestone Group develops BCPs and conducts drills to prepare for major earthquakes, which pose a significant risk.

In Japan, the Bridgestone Group also has established a BCP in preparation for a major earthquake in the Tokyo metropolitan area that would affect our head office, technical centers, and many other functions. We created a three-pronged office framework approach (consisting of Kyobashi, Kodaira, and Yokohama) for emergencies, ensuring backup functions. Emergency countermeasure organization drills are conducted in these three districts annually.

In 2015, evacuation points placing the highest priority on the preservation of human life and evacuation procedures were put in place at domestic facilities at risk in the event of a tsunami.

In addition, since the Great Hanshin-Awaji Earthquake in 1995, the Bridgestone Group has systematically implemented earthquake-resistance measures in buildings.

This is to protect the lives of each of our employees, but we also believe that protecting production facilities and other corporate assets from destruction is the basis of good corporate management. In the interest of business continuity, these initiatives also go toward mitigating risk to meet social requirements. Since the Great East Japan Earthquake in 2011, we have again looked carefully into the vulnerability to disaster of building components such as ceilings and pipes. We have put in place our own standards in these regards and are proceeding with earthquake-proofing in a well-planned manner.

In overseas SBUs, BCP and Earthquake-resistant measures in buildings and on manufacturing equipment are deployed or being implemented based on the risks assessment.

Response to New Types of Influenza and Other Severe Infectious Diseases

Since 2013, the Bridgestone Group has formulated BCPs to address the spread of new types of influenza and other severe infectious diseases that are potentially pandemic in scope. In 2015, our BCPs were revised to align with the World Health Organization’s global framework to aid in pandemic preparedness and response planning.

BCPs have effectively guided the Bridgestone Group’s response to Avian Influenza in China and ensured the well-being of our employees and business operations there. The company received global recognition for its successful efforts to control the spread of Ebola Hemorrhagic Fever at its Liberia-based natural rubber producing operation. Firestone Liberia not only saved lives, supported education and response efforts in surrounding communities, and partnered with the Government of Liberia and NGOs to detect and fight the disease, but kept its business running at the same time.

Going forward, Bridgestone will promote these initiatives throughout the entire Group to create a structure enabling a unified response to the spread of infectious diseases in all countries.

Personal Information Protection

The Bridgestone Group recognizes that it has been entrusted with the personal information of its customers and business partners, and has an obligation to handle this information carefully under the philosophy of respecting the personalities of individuals. In March 2005, we formulated a basic policy for personal information protection and put into place a structure for information management based on this policy. We created a Compliance Casebook, incorporated into our e-learning program cases involving personal information protection, and conduct ongoing trainings utilizing specific examples for all employees at Bridgestone and its group companies in Japan.

IT Security

The Bridgestone Group takes a systematic approach to IT security in order to prevent leaks of customer data and other confidential information and to ensure stable business continuity. We have formulated key points and standards for IT security as the regulations and rules regarding IT security activities and make regular revisions in response to technological advancements and changes in IT risks. Particularly strict standards have been set for the information systems handling personal information.

For the global group company network, Bridgestone is coordinating with the IT security teams in regions with Bridgestone Group companies, and working to formulate a new global security framework.

Bridgestone also takes steps to continually strengthen IT security throughout the corporate group, including e-learning programs for employees regarding email and other aspects of IT security, and regular internal audits to raise IT security awareness among employees.

Further, to counter targeted attacks and other advanced cyber threats, Bridgestone is strengthening its monitoring of networks and other systems and has established a structure to provide an immediate response to any IT security incident.