Risk Management Risk Management Building and Strengthening a Management System based on Fujikura Risk Management Rules To build and strengthen its management system, Fujikura uses its Risk Management Rules to classify risks into two categories: risks related to business opportunities (strategy risks) and risks related to the execution of its business activities (operational risks). Strategy risks are managed by senior executives from the Board of Directors and the Managing Directors Meeting, while operational risks are managed by the Risk Management Committee based on the Fujikura Risk Management Rules. For crisis management, we promptly provide information to senior management and have established a response organization and management system as part of the Fujikura Risk Management Rules. As for operational risks, we deal with a wide range of incidents that occur during our everyday corporate activities, including those related to compliance, quality assurance, environmental management, safety and hygiene, and information security. These incidents are handled under a system led by in-house organizations that specialize in each field. The Legal Department, Quality & Environment Management Division, Human Resource & General Affairs Division, Information Business System Engineering Division, Security Export Administrative Division and other in-house organizations help each operational division take the most appropriate steps to fulfil social mandates that society expects companies to meet, and to behave in ways that ensure the sustainable development of the company. In addition to respecting laws and regulations, Fujikura also holds social mandates in high regard, operating in ways that help garner more trust from a range of stakeholders including customers, consumers, employees, business partners, and shareholders. Compliance with the Antimonopoly Act At a meeting of the board of directors held September 28, 2009, board members approved the Fujikura Antimonopoly Act Compliance Program with a view to ensuring legal compliance. This was marked with an announcement by the president of the company’s commitment to compliance, the provision of relevant instructions to all directors and employees, and the enhancement of our in-house compliance system. Under this program, we are formulating rules on contacts with competitors, educating our sales staff and other relevant employees on the Antimonopoly Act, and implementing other measures to improve our in-house compliance system. Export control On the international front, nuclear and missile-development issues in North Korea are emerging as serious security concerns. As Japan is a major exporter of high-tech products and technologies on a par with the United States, terrorists and some countries of concern and are reportedly interested in Japanese products. If sensitive products and technologies are exported illegally to countries of concern—or fall into the hands of terrorists—and used to develop weapons of mass destruction, it will threaten the peace and security of the whole world. Some companies in Japan have illegally exported items related to weapons of mass destruction. Such acts threaten regional safety and damage Japan’s international credibility. Companies involved in such acts will held liable both socially and ethically, and are likely to be censured by society. As one of its basic principles, Fujikura respects international trade-control rules aimed at maintaining international peace and security. Our company is also committed to complying with foreign exchange and trade-related laws and regulations, and carrying out its corporate activities in line with social norms. Fujikura has set in-house, export-control rules for itself and domestic and overseas subsidiaries. These rules are used to ensure our freight and technologies do not violate relevant laws and regulations, and are also used to monitor our dealings with customers. We continue to improve our in-house rules, notifying employees of revisions to relevant laws and regulations and educating staff on export-control issues. We carry out internal audits on export control, thereby ensuring legal compliance and voluntary export control. Information security In our increasingly information-based society, information and information systems are playing a progressively important role within corporate activities. In recent years in particular, risks associated with electronic information have grown. As such, Fujikura regards the implementation of information-security measures as a top priority. The company formulated Basic Rules on the Security of Electronic Information in 2005 to protect all information handled by the Fujikura Group. We will fulfil our social responsibilities vis-à-vis information security by constantly increasing awareness of these rules among directors and employees, and urging them to comply. Basic principles on information security: Prevent illegal access, leakage, falsification and destruction of information assets by implementing appropriate personnel, and physical and technical measures. Never commit illegal acts. Ensure rapid response to minimize damage in the event of a security incident. Employ constant security measures, establish a security management system to respond to new threats, and ensure enhanced levels of safety through such steps. In order to implement these basic principles, we have established an information-security management system and are implementing various security measures. Specifically, we will take the following steps to eliminate the risk of information leakage: Regularly educate employees on information security. Control access to office buildings through the use of IC cards. Use hard-disk encryption to guard against the risk of theft and the loss of personal computers outside the company. Prevent leakage of important information by using email/Internet filtering. Ensure anti-virus software is used on every computer. Maintain data on information access by collecting computer-operation logs. Implement measures to prevent illegal external access of information. We will enhance our information security through careful management of our information assets and by providing information-security education to our employees. Simultaneously, we will improve our information-security level based on a plan-do-check-act (PDCA), cycle-driven management system to preserve the safety of information assets handled by the Fujikura Group, thus helping us win more trust from society.