Business Interruption Caused by Natural Disasters and System Failures
First written in FY2016. 1 of 3 entries say "Worsened", first in FY2018. Latest entry: FY2022.
The whole theme swung hardest in 2020: 22 of 49 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「We have prepared response plans for major earthquakes, wind and flood damage, a Mount Fuji eruption and measures against COVID-19, among other risks. We operate a framework under which the Company and its consolidated subsidiaries jointly hold advance preparedness meetings to consider the anticipated damage, establishment of an emergency response headquarters and decisions on whether to continue operations.」
To address the risk of business interruption from natural disasters and pandemics, multiple response plans, advance preparedness meetings, and a framework for establishing an emergency response headquarters and deciding whether to continue operations were put in place. - FY2018WorsenedAnnual report
「If natural disasters such as earthquakes, typhoons, floods, tsunamis and the increasing frequency of extreme weather associated with climate change, or fires, power outages, nuclear power plant accidents, wars, terrorist acts or other unlawful acts result in suspended business activities or substantial costs related to facility repairs and seriously disrupt the Group’s business operations, the Group’s operating results and financial condition may be affected.」
The description of natural disaster risks was broadened to expressly include the increasing frequency of extreme weather associated with climate change, as well as impacts on areas with a high concentration of stores and information systems. - FY2016First statedAnnual report
「If a system failure occurs due to a power outage, disaster, terrorist act, software or hardware defect, computer virus, unauthorized network intrusion or other cause, business operations may be disrupted, potentially affecting the Group’s operating results and financial condition.」
Both disasters in areas with a high concentration of stores and network and information system failures are identified as business continuity risks.