Risk Management
Basic Approach to Risk Management
PALTAC has established rules and guidelines, conducted training, and prepared manuals to ensure that all employees are familiar with them in order to fulfill our social responsibility by accurately addressing, and to the extent possible, preventing or eliminating risks that could hinder the achievement of our management objectives. In particular, we are systematically addressing the following without delay based on the following.
- Ensuring the safety of human life and the community
- Minimizing damage and loss
- Maintaining the trust of society
Risk Management System
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PALTAC's risk management system is led by the CSR Promotion Headquarters, In charge of Administration, in cooperation with management and other departments, to identify and analyze risks that may affect business operations, including climate change and human capital investment from a sustainability perspective, in order to comply with laws, regulations, and ethical standards recognized by society and to fulfill our corporate social responsibility. The CSR Promotion Division, the division in charge of risk management, is responsible for identifying and analyzing risks that may affect business operations, including those related to climate change and human capital investment from a sustainability perspective, developing company-wide risk management plans based on the degree of impact and likelihood of occurrence, evaluating their implementation, and ascertaining the status of each risk management response.
Significant risks" identified through these processes are regularly reported to the Board of Directors, which manages and supervises them.
With regard to information-related risks, we have established an Information Management Comitee to manage these risks, given its expertise. -
Monitoring of Risk Responses
The head of each Department conducts self-assessments of the Company's risk management as necessary.
The Corporate Auditing Department conducts company-wide audits or audits of specific departments as necessary, and promptly takes corrective and remedial measures for any problems that are identified.
Establishment and Maintenance of Internal Controls
In order to ensure that the Company is a sound company, we have established a basic policy for internal control based on the Companies Act. In response to the internal control reporting system for financial reporting based on the Financial Instruments and Exchange Law, each Department is responsible for the establishment, maintenance, and improvement functions of internal control and its management. Furthermore, the Corporate Auditing Department, which has the authority to monitor these controls, is working to identify risks of loss at an early stage.
Disaster Countermeasures
Daily necessities and OTC pharmaceuticals are indispensable for people to lead healthy lives. PALTAC believes that it is our social mission to provide a stable supply of these products.
Based on this awareness, we have formulated a Business Continuity Plan (BCP) to ensure that even in the event of a large-scale disaster or disease pandemic, our stable supply of products will not be disrupted, and we will fulfill our role as a social infrastructure company.
Disaster Countermeasure Manual (Natural Disasters)
We have prepared a manual that outlines specific details regarding damage assumptions, preliminary measures, operations in the event of a disaster, and organizational structure in the event of an emergency, and have ensured that all employees are familiar with the contents of the manual.
Establishment of an organizational structure in the event of an earthquake
In the event of an earthquake of intensity 6 or lower on the Japanese seismic intensity scale, we will immediately assess the disaster situation and, if necessary, set up a "Disaster Countermeasures Headquarters" at our Head Office.
The Disaster Control Headquarters will promptly confirm the safety of employees and their families in the affected area and the extent of damage, and will take the lead in promoting various measures for business continuity in cooperation with the relevant Departments.
Natural Disaster Risk Countermeasures
We have formulated an effective business continuity plan (BCP) and put in place various countermeasures based on our risk assumptions, with a focus on earthquakes, which are the greatest natural disaster risk in Japan.
Installation of in-house power generation equipment
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We have installed private power generation equipment at major large-scale distribution centers (RDC: Regional Distribution Centers) and distribution centers nationwide, and are prepared to ensure a stable supply of products, including daily necessities and OTC pharmaceuticals, in the event of a disaster.
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Establishment of emergency communication means
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We have installed IP radios as emergency communication lines at our major bases nationwide to ensure prompt and accurate communication in the event of a disaster.
We have also introduced a videoconferencing system to provide an environment in which the head office and Branch Offices can discuss measures to be taken in the event of difficulty in moving from one location to another. -
IP radio (left) and video conferencing system (right)
Preparations for Large-Scale Earthquakes, Windstorms, Floods, and Other Disasters
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In preparation for the event that employees are unable to return home due to a large-scale earthquake, windstorm, flood, or other disaster, we always have supplies of drinking water, food, and other disaster supplies for employees and their families at major business locations throughout Japan.
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Safety Confirmation System
In the event of a major earthquake, windstorm, flood, or other disaster, we have introduced a system to promptly confirm the safety of employees using smartphones and personal computers.
System Disaster Prevention Measures
To prevent loss or damage of data due to disasters, we are prepared to continue business operations even in the event of a disaster by duplicating servers, backing up data, and using data centers that are earthquake-proof, fire-proof, and equipped for power outages.
Flow of System Recovery
Image of switching to a backup site in the event of a disaster
*The main site and backup site are facilities located in different locations.
Information Security
PALTAC holds a variety of information, including personal information of our business partners. Managing and protecting this information is an important social responsibility. In addition to hardware measures such as systems, we believe it is important to educate employees who handle information, and under our Basic Policy on Information Security, we implement various measures in terms of both hardware and software to ensure thorough information management.
Basic Policy on Information Security
Update: October 28, 2021
Basic Policy on Information Security
We consider the information provided by our suppliers and the systems related to the operation of our distribution centers to be important assets that support our mission of providing a stable supply of daily necessities and optimizing and streamlining the entire supply chain.
In order to protect these information assets and continue to provide value as a company that supports the social infrastructure of distribution, we have implemented the following measures to ensure information security in a systematic and continuous manner.
- Establishment of information management rules and information security policy
- Implementation of information security education
- Implementation of security measures through various systems
Chief Information Security Officer (CISO)
Director, Senior Managing Executive Officer, General Manager of Management Planning Headquarters
MASAHARU SHIMADA
Establishment of Information Management Regulations and Information Security Policy
We have established "Information Management Regulations" and "Information Security Policy" as standards for information management. In addition, to ensure thorough information management, we have established an Information Management Comitee under the direction of the Chief Information Security Officer (appointed by the Director), and an internal system in which each Department has an In charge of Administration and a person in charge of Administration.
Implementation of Information Security Education
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We believe that the awareness of each and every employee who handles information is of utmost importance in information management. To this end, we conduct regular online training using the MEDIPAL Group's common "Information Security Lecture" materials, regularly conduct the "Information Management Pledge," in which all employees recite the precautions for handling information, and educate employees about information management on the company network.
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Security measures through various systems
We have implemented security measures to protect information and prevent information leaks, including anti-virus measures, unauthorized access measures, and data encryption for mobile PCs.
Social Media Usage Policy Guidelines
We have established a "Social Media Policy" and "Social Media Guidelines" to ensure better communication between our company and customers through our official social media accounts.
