Risk Management

Initiatives for Risk Management

Further Reinforcing Crisis Management

The Idemitsu Group has formulated Crisis Response Rules as the topmost of its regulations concerning crisis readiness, stipulating response policy and crisis-level definitions, the system for emergency communication and cooperation, and methods for establishing emergency task forces.
Based on the Rules, from the initial stage of risk, the Group’s risk-related information is swiftly shared with the department in charge of the business site where the risk has occurred and the General Affairs Department risk management section, as well as with the Risk Management Committee members as appropriate. According to the level of crisis, relevant departments, including the Corporate Departments, support the business site facing the risk or take the initiative in responding to the risk to minimize any potential social impact or damage.
In FY2006, we formulated a Business Continuity Plan (BCP) for the eventuality of an earthquake with an epicenter in the Tokyo metropolitan area, in FY2009, formulated a BCP for the eventuality of an outbreak of avian influenza, and in FY2012, formulated a BCP for the a Nankai megathrust earthquake. In FY2015, as Idemitsu was appointed as a designated public institution by the Cabinet Office ,we announced the Disaster Prevention Action Plan. We have hold annual comprehensive disaster drills based on those BCPs and confirm problems in actual action to take and coordination with each business base to strengthen our practical response capabilities and to reflect revisions to the BCP. At our refineries, complexes, plants, and other business sites, we implement periodic disaster prevention drills in the whole site based on applicable crisis response regulations.

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出光興産, DFF Inc.

Acquiring Highest BCM Rating from the Development Bank of Japan

Idemitsu became the first oil refiner and primary oil distributor to receive the highest “Rank A" from the Development Bank of Japan (DBJ) in the DBJ BCM Rated Loan Program.
The DBJ BCM Rated Loan Program is the world’s first loan menu to incorporate the BCM (Business Continuity Management) ratings. Using a proprietary screening system, DBJ assesses a company’s disaster measures and business continuity plans and offers loan conditions based on the assessment results. The rating is classified into three grades from the highest “Rank A" to "Rank C."
We received Rank A: company with excellent advanced initiatives to disaster measures and BCP as the following three aspects were highly evaluated:

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Cooperative Joint drill for fuel supply in a disaster by the JGSDF Northern Army and the Hokkaido Bureau of Economy, Trade and Industry (February 2018)

  1. Under the commitment of the top management, we have established a risk management system that covers all-risk hazards, including geopolitics and cyber risks. Employees work together with management to strengthen its resilience to risks, including risk control through prior investment, and preparation of various risk financing methods based on the analysis of financial impact at the time of risk occurrence.
  2. Considering it as a social mission to continue supply of oil for people’s life, we have thoroughly implemented advanced quake-resistance measures in the industry by introducing an overseas risk engineer survey to ensure safety, disaster prevention inspection and preventive measures in the global standards. In addition, we have established a system to continue oil supply across Japan based on the "Plan for Joint-Operations of Oil Supply in Disasters," which is industrial cooperative framework for emergency supply.
  3. We work to constantly improve the business continuity plans through implementing various BC drills involving outside stakeholders, including Self-Defense Forces. We also improve the effectiveness of emergency response, including the enhancement a human resource development system to support sophisticated risk management.

We continue to review its BC plans through active use of external evaluations and implementation of practical drills aimed at strengthening response capabilities.

出光興産, DFF Inc.