Crisis Management and Business Continuity Management
Crisis Management Systems
To deal with risks that arise due to disasters and computer system failures, and then lead to crises that extend beyond the domain of risk management, Resona Holdings and other Resona Group companies have prepared basic policies for crisis management and established crisis management systems. These policies and systems are intended to ensure the continuation of business activities and the early restoration of functions by taking quick action and other measures to minimize risk as well as to secure the safety of customers, employees, and others.
When a major crisis occurs, a crisis management headquarters is formed in each Group company, which is headed by the presidents of the respective Group companies (or their duly appointed representatives). Group companies then work together to respond to the crisis.
Diagram of Group Crisis Management Systems
Business Continuity Systems
Basic Policy for Business Continuity
To deal with risks that arise due to natural disasters, such as major earthquakes, and pandemic diseases, such as new strains of the influenza virus, that may lead to crises that threaten the continuity of business operations, the basic policy for business continuity of the Resona Group is as shown below. To prevent the interruption of financial system functions, the Group prepares business continuity plans and works to create systems for business continuity, and then endeavors to make improvements in these plans and systems based on the results of inspections undertaken by the representative executive officers (or representative directors) in charge.
Basic Policy for Business Continuity
Our basic policy for business continuity seeks to:
- secure the lives and personal safety of customers, employees, and other related persons as a matter of top priority;
- contribute to the maintenance of the livelihood and economic activities of customers as well as to restrain the impact on the monetary settlement systems by taking measures to continue business activities or to restore functions at an early date to the maximum extent possible;
- maintain the soundness of our operations and minimize the risk inherent in management by keeping opportunity losses due to the suspension of business operations to an absolute minimum and by securing assets and trust assets appropriately; and
- create the necessary systems and the infrastructure and allocate appropriate management resources in order to ensure the efficacy of the above policies.
Preparation of Business Continuity Plans
The Resona Group companies, based on the Basic Policy for Business Continuity, have prepared a business continuity plan, various rules and regulations, manuals, and other items based on the assumption of the occurrence of such crises as a major earthquake, pandemic diseases, and other crises.
In the business continuity plan, it is assumed that the continuation of business operations will be difficult because of crises, such as a major earthquake. While giving due consideration to the safety of the lives and personal safety of customers, employees, and others, the plan sets forth specifically the measures to secure the necessary management resources and business execution systems as well as measures to provide for continuity of business operations or to secure the early restoration of functions to maintain the proper workings of the financial system.
Priority Business Operations during Times of Crises
After giving consideration to customers and monetary settlements, the Resona Group companies have positioned the following business operations as priority activities during emergencies following major earthquakes and other disasters: Repayment of Deposits, money transfers, funds and securities settlement, and certain other activities. The objective we have set is to have these business operations back in service within the same day the disaster occurs.
Principal Infrastructure Improvements
The Group's East-West Backup Systems
To prepare for major earthquakes, in their headquarters, branches, system centers, and major facilities, the Resona Group companies are taking such steps as increasing the earthquake resistance of their buildings and installing emergency electric power generators.
In addition, Group companies have established Head Office functions and system centers in both the Tokyo metropolitan area in eastern Japan and in the Kansai region in the western part of Japan to reduce the risk of the impairment of these functions and provide backup systems in the event of a major earthquake in eastern or western Japan. In addition, as a safety measure for major computer systems, Group companies have provided for emergency backup systems in remote areas and have built the duplicated network infrastructure among offices. Also, to provide for the possibility that communication networks may go down, Group companies have introduced communication devices, including satellite phones, telephones that have priority during disasters, transceivers for business use, etc. Also, to strengthen capabilities for making contact during emergencies, the Group has installed TV conferencing systems in the branches.
Securing Personnel for Business Continuity
During times of crises, such as major earthquakes, pandemic diseases, and other crises, it may be difficult to secure sufficient personnel for the continuation of business operations as employees may fall victim to these circumstances or become incapacitated as a result of them, and transportation systems may be disrupted. For these reasons, the companies of the Resona Group have prepared measures for securing necessary personnel during times of emergency under the assumption that safety of personnel can be maintained. Also, in all offices, stores of emergency supplies have been readied for such contingencies.
Cooperating with and Contributing to the Community
The companies of the Resona Group, as retail banks with close ties to their regions, contribute to their local communities from a financial perspective through the continuation of their business activities. Resona Group companies also work together with local communities for recovery activities during times of disaster and, during normal times, to provide educational and information dissemination activities.
In accordance with the Comprehensive Agreement Concerning Cooperation during Times of Disaster, which has been concluded with Saitama Prefecture, Saitama Resona Bank is working in cooperation with the local communities. In August 2019, Saitama Resona Bank participated in a wider drill organized by Wako City, Saitama Prefecture.
Initiatives to Upgrade Business Continuity Systems
The companies of the Resona Group are preparing business continuity systems to deal with many kinds of crises. These include natural disasters, such as earthquakes and floods, pandemic diseases, such as new strains of the influenza virus, system failures due to cyber-terror incidents, and other crises. At the same time, the Group is working to increase its capabilities for coping with crises through training and education for employees and conduct a joint crisis management drill of the Resona Group. To have Resona Group customers use its services with a sense of safety, the Group is continuing to enhance the sophistication of its business continuity systems.