Through its global activities in the ICT industry, the Fujitsu Group continuously seeks to increase its corporate value, and to contribute to its customers, local communities and indeed all stakeholders. The Group identifies, analyzes and evaluates the risks that accompany business activities and works on measures to avoid or reduce them, and to deal with them quickly in the unlikely event that they materialize.
Deficiencies or defects in products and services, information security, project management, investment decisions, intellectual property rights, human resources, environmental pollution, credit risks, etc. With the aim of integrating and strengthening its global risk management and compliance structures, the Fujitsu Group has established a Risk Management and Compliance Committee as one of the internal control committees reporting to top management. The Risk Management & Compliance Committee appoints a Chief Risk Compliance Officer for each department and company throughout the Group, and encourages cooperation among them to both guard against potential risks and mitigate risks that materialize, forming a risk management and compliance structure for the entire Group.
The Risk Management & Compliance Committee, which maintains regular communications with Chief Risk Compliance Officers, identifies, analyzes and evaluates the risks of business activities, and sets out and reviews the responsive measures, upon confirming the detailed measures intended to deal with major risks by averting, minimizing, transferring or retaining them. The Risk Management Committee also prepares responses against the actual materialization of a risk despite the implementation of various preventive measures. The Risk Management & Compliance Committee continuously confirms the implementation status of these processes and works to make improvements.
To build a robust disaster-preparedness network and enhance our business continuity response capabilities, the Fujitsu Group has created a Group-wide disaster-preparedness organization, in anticipation of a major disaster. We are conducting joint testing throughout the Fujitsu Group, targeting facilities that are critical to Fujitsu business continuity.
At all Fujitsu Group facilities, we select the high-priority facilities that require verification across various criteria, and conduct joint inspections. The risks of circumstances that threaten economic and social continuity, such as large-scale disasters like earthquakes flooding, disruptive incidents, accidents, and pandemics such as the new strain of influenza, have increased greatly in recent years. To ensure that even when such unforeseen circumstances occur, we can continue to provide a stable supply of products and services with enhanced performance and high quality which meet the demands of customers, the Fujitsu Group has established a Business Continuity Plan (BCP), and promotes Business Continuity Management (BCM) as a way of continuously reviewing and improving that BCP for establishing in the field. In order to consistently supply products and services even under unforeseen circumstances, Fujitsu has been continuously supporting the improvement of business continuity capability with our business partners since FY 2007, with the belief that it is essential to strengthen business continuity capability along our entire supply chain.
The Fujitsu Group plans on developing its specialists in order to further promote, implement, and improve BCM. We have taken steps against new strains of influenza and other infectious diseases based on a three-fold influenza policy- to safeguard lives, to stop the spread of infection, and to ensure business continuity.

We developed and operate a systematic educational curriculum that aims for extensive risk management across the entire Group. Through this curriculum, we inform our employees of our basic approach to risk management and the rules to be followed, and cite concrete examples to strengthen our employees' awareness of risk management and their ability to deal with risks.
Properly assessing and dealing with the risks that threaten the achievement of our objectives, taking steps to prevent the occurrence of these risk events, and establishing measures to minimize the impact of such events if they do occur and to prevent their reoccurrence are assigned a high priority by management. More detailed risk-related information can be found in our earnings report, securities reports and other published reports. In practical terms, it decides on risk management regulations and guidelines, applies them and regularly reviews and improves them. It also reports identified, analyzed, and evaluated important risks regularly to the top management. If a critical risk such as a natural disaster, product breakdown or defect, a problem with a system or service, a compliance violation, an information security breach, or an environmental problem materializes, the department or Group company reports immediately to the Risk Management & Compliance Committee. These include disaster prevention manuals, disaster response plans (DRP), operation of disaster prevention organizations, and maintenance conditions of disaster prevention stocked items and facilities. Led by teams made up of internal departments for environmental management, facility management, safe operation of production equipment and procedures, and risk management, these checks are ensuring that laws are being upheld, while also conducting joint testing throughout the Fujitsu Group in order to prevent accidents that could arise from aging infrastructure or from fires and other natural disasters. Furthermore, based on its results, we share good practices and cases of improvements made regarding disaster preparedness with other facilities in the Group. Through the BCM process, the lessons learned in the course of the Great East Japan Earthquake and the flooding in Thailand are now reflected in our BCP. In FY2014, we have revised our evaluation methods of business partners, and assessed business continuity capability based on exercises.
As one example of this, we use risk management service to clarify the scope impact risks have on the supply chain. In FY 2014, BCM specialists from each department took part in continued training to better understand BCP for their own department and learn how to conduct actual BCM activities. We created a "Pandemic influenza Preparedness Action Plan" that stipulates preventive measures in everyday operations and the response process to be used if an outbreak occurs. We also hold education and training programs as appropriate on issues such as information security, environmental problems, and natural disasters.

Moreover, we have built a risk management and compliance system for the entire Group and are committed to its continuous implementation and improvement. The Risk Management & Compliance Committee coordinates with the related divisions and workplaces for rapid resolution of the problem by appropriate measures such as establishing a task force. An earthquake is predicted to occur in the Southern Ibaraki Prefecture, and Fujitsu's important production and service facilities located nearby are expected to be affected by the disaster. The self checks are meant to minimize personal injury and property damage in the event of a disaster.
We have also introduced a questionnaire based on the business continuity capability survey indicator of the Ministry of Economy, Trade and Industry. Our plan now is to move forward with BCM throughout the entire supply chain, not just our logistics and production supply chains, with efforts that include providing support for improvement of business continuity capability for our suppliers, with our specialists playing a central role.
We work to disseminate these to all employees through e-Learning and by distributing pamphlets. At the same time, the Risk Management Committee strives to identify the causes of the problem and propose and implement solutions. Therefore, Fujitsu is carrying out initial response training in collaboration with each at-risk business site. Also, to contribute to the continuity of social infrastructure businesses and the continuity of our customers' businesses should a pandemic occur or a particularly virulent new strain of influenza arise, we have established, and carry out training based on, a "Business Continuity Action Plan for Measures Against Pandemic influenza". Additionally, for critical risks, the committee also reports as appropriate to the Management Council and the Board of Directors. Sites around Japan also carried out initial response training centered on confirming employee safety and checking for damage to work-related buildings immediately after a disaster.

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