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Tokyo Gas Group CSR Report 2016

Governance Report
Risk Management

Risk Management System

Enterprise risk management system

In fiscal 2003, Tokyo Gas established an enterprise risk management (ERM) system and drew up risk management regulations, which include documented rules concerning major risks faced by the Group.

The Risk Management Committee was established in fiscal 2008 with the aim of identifying progress regarding the establishment and the operational status of the ERM system, as well as improving the level of ERM. The committee periodically undertakes risk assessments and checks on progress regarding the establishment and the operational status of the ERM system. It also reports to the Corporate Executive Meeting and obtains the necessary approvals. Moreover, since the start of fiscal 2011, the risk management function has been the responsibility of the Corporate Planning Department, and there has been a framework in place for implementing unified ERM together with operational management.

Under the framework, around 120 Risk Management Promotion Officers are deployed in the business departments of Tokyo Gas and its subsidiaries and affiliates in order to promote ERM. Each year, we assess risks and the implementation and improvement status of countermeasures. This system facilitates the steady implementation of the ERM-PDCA cycle.

Enterprise Risk Management (ERM) System
Enterprise Risk Management (ERM) System

Crisis management system

Because the Company provides public services that are essential for a lifeline, for many years it has also had a crisis management system that serves as a response system in case an accident or other risk-related event actually occurs. Specifically, we have formulated Emergency Response Regulations. In case of crises, including major natural disasters, such as earthquakes, or production or supply disruptions arising from major accidents at LNG terminals and pipelines, as well as influenza, terrorism, failures in mission-critical IT systems, and compliance problems, the Emergency Response Organization responds to the situation immediately in accordance with the Emergency Response Organization Regulations.

Periodic training is conducted in relation to major risk response measures. Moreover, the Company has also formulated a Business Continuity Plan (BCP), outlining its responses in the event of a major earthquake of the magnitude assumed by Japan's Cabinet Office, a major accident disrupting gas supply, big power blackout, an outbreak of influenza, and a large-scale mission-critical IT system stoppage, etc. This plan is in place to reinforce the Company's risk management system.

Emergency Response Organization
Emergency Response Organization

Promoting Risk Management

Provision of risk management training

Tokyo Gas Group provides various training programs in order to promote risk management.

Specifically, in fiscal 2015, we held training for Risk Management Promotion Officers and newly appointed department heads and managers (newly appointed office bearers) in each department of our company, as well as subsidiaries and affiliates, so that they could appropriately perform necessary risk management in their respective positions and enhance their risk management capabilities.

Escalation Rules

In order to further enforce a corporate and organizational culture in which, when "major risks faced by the Group" become apparent, the information is reported to a superior at the necessary level in a timely and appropriate manner, we established "Reporting rules when major risks become apparent (Escalation Rules)" as sub-rules under the risk management regulations mentioned above, and are enforcing these rules in an appropriate manner.


Risks of Businesses

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