Risk Management

SoftBank Corp. strives to reduce risks and prevent the occurrence of risk events during normal times and has compiled and documented the Risk Management Regulations, aiming to minimize the potential human, economic, and social impacts (losses) that ensue if a substantial risk does materialize. Furthermore, based on the regulations, responsible departments have been designated to address various risks in order to maintain and improve the level of readiness.

Basic framework

SoftBank manages risks based on a PDCA cycle implemented by the Corporate Security Department of General Administration Division: (1) annual policy and plan development, (2) implementation and training, (3) check and correction, and (4) management review.

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.

  • Network failures and accidents
  • Information system failures and accidents
  • Leakage of information, including personal information, and violation of the secrecy of communications
  • Serious damage or accidents adversely affecting sales
  • Major disasters (earthquake, fire, and weather related damage)
  • Contingency situations arising from an armed attack or act of terrorism
  • Major accidents or misconduct by employees
  • Outbreak of infectious disease
  • Serious law violations or compliance violations
  • Media reports damaging the brand significantly
  • Serious damage to the brand
  • Substantial failures and accidents concerning products
  • Other substantial risks that would cause protracted disruption of operations
[Note]
  • *
    These are just some of the risks that accompany business activities. Please see Risk Factors for further details.

Risk management structure

The General Affairs Division's Corporate Security Department oversees the progress of risk evaluation, analysis, and response at each department at SoftBank Corp., which is responsible for telecommunications-related businesses, and regularly reports its findings to the Board of Directors.

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.