Risk Management

The company must be able to anticipate all the risks facing the business, conduct routine prevention activities, and prepare for and implement contingency measures in advance. The company has established "Risk Management Regulations" that combine both those daily prevention activities and emergency responses, defining the company's internal risk management system as shown in the figure below.

Basic Policy of Risk Management

To ensure the soundness of management and the reliability of corporate value, the company positions risk management as an important issue for management and implements the following matters.

1. Recognize various management risks, prevent the occurrence of crises, and take reasonable and appropriate measures in advance to minimize any damage caused by a crisis and any impact on society.
2. Establish a management policy for each risk and maintain a continuous management cycle with an organizational system.
3. In the event of a major incident, the company will do its utmost to full our corporate social responsibility by preserving the company's assets and quickly recovering its business, putting people’s safety first.

Risk Management System

Natural Disaster Risk Management Sub-Committee

We have established the Natural Disaster Risk Management Sub-Committee to address risks arising from large-scale disasters such as major earthquakes, typhoons, concentrated heavy rainfall leading to floods, and the spread of infectious diseases, and we are actively implementing countermeasures.

Star Micronics Group Business Continuity Plan Basic Policy

Star Micronics Group (hereinafter referred to as “our Group”) will extract risks anticipated in advance and implement measures to prevent or mitigate those risks, in order to continue business activities even in the event of major disasters such as large-scale earthquakes, typhoons, heavy rainfall causing flooding, and the spread of infectious diseases. We will formulate a Business Continuity Plan (hereinafter referred to as “BCP”) and create action plans for executives and employees to take in times of emergency. Furthermore, through training based on the BCP, we will continuously review and improve our responses to strengthen our resilience against disasters.

Star Micronics Group Business Continuity Plan Basic Policy

1．Basic Policy

1. Ensuring the safety and well-being of employees is the highest priority
2. Preserve company facilities and achieve prompt recovery of systems to resume and continue operations swiftly
3. Support customers’ business resumption and maintain our credibility
4. Foster a corporate culture in which employees maintain awareness of potential crises and are prepared for emergency responses
5. Cooperate and coordinate with the local community to support restoration and reconstruction efforts

2．Management Structure

1. The Risk Management Committee will oversee the progress of the BCP
2. The Chief Risk Management Officer of the Risk Management Committee shall be the President and Representative Director (Executive Officer)
3. To strengthen and promote BCP initiatives, establish the Natural Disaster Risk Management Sub-Committee under the Risk Management Committee
4. The person responsible for the measures of the Natural Disaster Risk Management Sub-Committee shall be the Director of General Affairs
5. Members of the Natural Disaster Risk Management Sub-Committee shall be the heads of the administrative divisions of each organization, and the heads of these divisions shall select other members as appropriate to the business

3．Continuous Review

1. Regularly conduct trainings and exercises based on the BCP, have the Natural Disaster Risk Management Sub-Committee discuss identified weaknesses, issues, and challenges, and implement revisions to the BCP
2. Flexibly respond to new risks and changes in social conditions

Information Security Risk Management Sub-Committee

We have established the Information Security Risk Management Sub-Committee to address information security-related risks and to implement appropriate countermeasures.

Basic Policy

1. We will systematically and continually ensure information security in the management of information assets.
2. For the use of information assets, we establish internal standards to protect and ensure the reliability of information assets and implement appropriate measures.
3. We will comply with laws, guidelines, and company standards and social norms related to information security.
4. In the event of any information security incident, we will respond promptly to minimize damage and conduct cause analysis to implement preventive measures against recurrence.
5. We will continuously conduct information security awareness activities for users and provide education on this policy and related regulations.
6. Each group company will appoint an Information Security Officer. The number and roles of these officers will be determined as appropriate to the company's organization and size, but generally the information system administrators and responsible personnel will take on this duty.

Export Control Risk Management Sub-Committee (Security Export Control Committee)

We have established the Export Control Risk Management Sub-Committee (Security Export Control Committee) to address risks related to exports and to implement countermeasures.

Basic Policy

1. From the perspective of maintaining international peace and security, exports and transfers of goods and technologies that could be diverted to development or production of weapons of mass destruction or conventional weapons are managed within the framework of international security export controls.
2. In Star Micronics Group as well, when exporting goods or providing technologies overseas, we conduct screening for exportability and transaction screening (destination country/region, use, customer verification), obtain the necessary export licenses, and ensure strict management.
3. The Export Control Risk Management Subcommittee advances measures to comply not only with the Foreign Exchange and Foreign Trade Act (the “FEFTA”) but also with security export control regulations based on FEFTA.