Risk Management
The environment surrounding enterprises is changing constantly, and risks have more complexity and variety. SoftBank corp. strives to reduce risks and prevent the occurrence of risk events by having the risk management structure to identify and take measure against risks and implementing a PDCA cycle regularly in order to identify and take measure against risks in the early stage.
Risk management structure
SoftBank Corp has the risk management structure enables to analyze risks from various perspectives to identify risks and prevent the occurrence of risk events. Each division creates business plans with analyzing risks, and the Risk Management Ofice identifies comprehensive risks from the whole organization and examines the measures against risks and reports to the Risk Managemant Committee which is organized with CEO, representative directors, CFO, etc and is participated by the auditors and related directors, etc. The Risk Managemant Committee decides the importance and the person responsible of each risk, orders to take measures against risks, and reports to the bord of directors. The Internal Audit Office audits the progress of whole risk management structure and its status from the independent perspective.
Risk management methods
SoftBank manages risks based on a PDCA cycle implemented by the Risk Management Office: (1) conducting annual risk assessment in order to identify risks, and deciding the importance of risks and policy and plan at the Risk Management Comittee, (2) taking measures against risks based on the policy and plan, (3) monitoring the progress of measures against risk by the Risk Management Office, and (4) improvement of measures.
Substantial risks
SoftBank has identified the following substantial risks that accompany business activities and work on a day-to-day basis to reduce and prevent such risks.
Risk item | Typical risk example | Risk reduction measure |
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Risks related to changes in politics, economy, social conditions, regulations, market environment, and competition with other companies
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Risks related to changes in technology and business models
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Risk of information leakage and inappropriate use of products and services provided by our company
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Risks of providing a network
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Risks related to corporate acquisition, business alliances, establishment of joint ventures
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Risks of dependence on other companies' management resources |
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Risks related to training and securing human resources
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Legal and compliance risks
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Financial and accounting risks
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Relationship risk with Parent Company
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Service halt and service degradation risks due to related system failure |
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- [Note]
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- *These are just some of the risks that accompany business activities. Please see Risk Factors for further details.
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Establishment of emergency
response department
In a major disaster, personnel from each company will gather and analyze information on the damage in their areas of responsibility. Based on the impact of the damage, an Emergency Response Department will be established and take action to rapidly restore the telecommunications network.
Structure based on
disaster response agreements
To assist swift restoration efforts in the event of a major disaster or emergency, SoftBank has signed “Disaster Response Agreements” with Japan's Ministry of Defense and the Japan Coast Guard for the purpose of securing communications and mutually cooperating in a wide range of areas.
As communications are a necessary means of assisting life-saving activities following a disaster, SoftBank provides satellite mobile phones, SoftBank mobile phones and other communication equipment to the Ministry of Defense and the Japan Coast Guard. Furthermore, the Ministry and Coast Guard provides SoftBank with logistics assistance and the ability to use their facilities and equipment so SoftBank can better secure communications and conduct restoration activities in affected areas.
SoftBank will continue to work closely with the Ministry of Defense, Coast Guard and other related institutions in disaster preparedness and carry out its responsibilities to society as a communications carrier.
Emergency operational plans
SoftBank Corp. is working to ensure the provision of stable telecommunications services and to ensure the safety of customers in emergency situations such as a natural disasters, terrorist attacks or pandemics.
Disaster operational plan
Japan's Disaster Countermeasures Basic Act was established for the purpose of protecting national land as well as citizens' lives, livelihoods and property, and to maintain social order and secure public welfare in the event of a disaster. The Act's disaster management system stipulates the roles and responsibilities of the national government, local governments and designated public corporations.
Under the Act, SoftBank is designated public corporations as set out by the national government, and thus formulate Disaster operational plans. The company has established systems for disaster prevention and preparedness, and in the case of disasters, respond in accordance with their Disaster operational plans while working closely with relevant government organizations and public corporations.
Civil protection
operational plan
The Law concerning the Measures for Protection of the People in Armed Attack Situations etc. (“the Civil Protection Law”) was formulated with the aim of protecting the lives, health and assets of citizens in the event of an armed attack and minimizing the impact of an armed attack on citizens' lives and on the nation's economy. The Civil Protection Law allocates roles to the national government, prefectural and municipal governments, cities, towns and villages, defines the roles of designated public institutions and delineates an organizational framework for protecting civilians.
SoftBank, which is designated public institutions, has developed a Civil protection operational plan based on the Civil Protection Law. In the event of the threat or occurrence of a terrorist attack, the company will coordinate with other relevant institutions in accordance with the Civil protection operational plan.
New flu strains countermeasure
operational plan
In its Guidelines on Measures against New Flu Strains, the Japanese government sets out strengthened measures to counter new strains of influenza for the purpose of protecting citizens' lives and health, and to minimize any potential impact on daily life and the economy. The Guidelines stipulate the roles and responsibilities of designated public companies and a management system for emergencies.
Under the Guidelines, SoftBank, which is designated public corporation as set out by the national government, is formulating Operational Plans in line with the government's action plan. Incorporating systems for before an outbreak occurs and after an outbreak occurs outside Japan, infection countermeasures and other items into the Operational Plans, SoftBank will work closely with relevant government organizations and public corporations to respond to an outbreak.