The Coca-Cola Bottlers Japan Holdings Inc. Group (CCBJH Group) has set up 1) the standing Risk Management Committee, which formulates basic policies, and deliberates and decides risk prevention activities; 2) the Crisis Management Committee, which decides and leads the response when a major problem or accident occurs; and 3) the Disaster Countermeasures Task Force, which deliberates and initiates the business continuity plan (BCP) when a wide-area disaster occurs that signifi cantly impacts business activities.
All Coca-Cola Bottlers Japan Holdings Inc. Group companies and departments implement PDCA cycles and engage in risk prevention activities. Those responsible for risk management have the ability to make autonomous decisions and serve as the Group's fi rst line of defense. Risk monitoring by the department in charge of ERM*1, which handles the administrative duties for the committees listed above, is the second line of defense. Assurance by the internal audit department is the third line of defense. If an incident occurs, the Group gathers information and discusses an initial response and solutions using the Coca-Cola system's Incident Management and Crisis Resolution (IMCR) protocols, and the president of CCBJH may convene the Crisis Management Committee if needed.
*1 Enterprise Risk Management: A process used in the overall management of any risk that could occur in the course of business
*2 Emergency Planning
The CCBJH Group, in cooperation with The Coca-Cola Company, held an ERM Global Workshop led by Mr.Gerold Knight, Chief Risk Offi cer of Coca-Cola Hellenic Bottling Company, for the leadership of Coca-Cola Japan and the Coca-Cola bottlers in Japan.
Members of the Coca-Cola system confi rmed the importance of routinely engaging in risk prevention, and earnestly and strategically engaging in integrated risk management.
In July 2018, Japan was struck by a concentration of torrential rains, especially in western Japan, which inflicted damage on many facilities including those of the Coca-Cola Bottlers Japan Inc. Group (CCBJH Group) . During this natural disaster, Coca-Cola Bottlers Japan Inc. (CCBJI) put its business continuity plan (BCP) into action. While quickly establishing a framework for restoring its main operations and collaborating with related divisions, CCBJI moved forward to systematically deploy the necessary corporate resources.
As the record rainfall continued, a nearby river's banks overflowed and inundated the Hongo Plant, halting operations at manufacturing facilities and automated warehouses. As the impact spread, affecting plants, warehouses, and the logistics function for the region, the first action was to put in place an emergency response headquarters. We simultaneously set up a response office on-site and, the very next day, dispatched managers from the HR, General Affairs, and SCM functions to coordinate actions at the plant. CCBJI also began to provide food and personal necessities to employees. The rain had caused damage to the homes and vehicles of many employees and because of the time it took for the power and water supply to be restored, it was more than a week before employees were able to return to work. During the intense heat of summer, while exercising proper precaution against heat exhaustion and serious injury, employees rallied together to carry out the restoration work. Furthermore, because the water supply to the surrounding area was interrupted for an extended period of time, manufacturing water that remained in the supply tanks and emergency water delivered from nearby plants was distributed to people in the neighboring areas, and CCBJI provided a location for the Japanese Self-Defense Force to set up the water distribution center.
Damage to equipment, other property assets, and inventories, along with disruptions to the transportation network, had a major impact on product supply and distribution. There was an increase in demand due to a heat wave, which caused continual product shortages. We visited our business partners to explain the difficult situation and gain their understanding, but we also put together a support network that allowed us to distribute products from other areas of the country.