Governance
Risk Management
Internal Control System
Chubu Electric Power reviews its internal control system for improvements with regard to the matters prescribed in “Systems for Ensuring Proper Conduct of Business Operations,” which prescribes the underlying principles of internal control system improvements, and implements necessary changes from time to time in view of, among others, changes in the business environment. The status of the design and the operation of the internal control system is reported annually to the Board of Directors.
Chubu Electric Power Grid and Chubu Electric Power Miraiz, which have been split off, will also establish and properly design and operate their own “Systems for Ensuring Proper Conduct of Business Operations” in the same manner as Chubu Electric Power. With regard to internal controls at the Group level, Chubu Electric Power has established a department that oversees Group companies, which is responsible for the formulation of management strategies and policies concerning Group companies and the business administration of them. In addition, our internal audit department conducts internal audits of Group companies by providing support to help Group companies design and operate their internal controls.
As part of our responses to the reporting system for internal controls over financial reporting under the Financial Instruments and Exchange Act, we have developed and operate mechanisms to visualize, verify, and assess important processes related to financial reporting.
Management of Risks That Could Have a Serious Impact on the Company
At Chubu Electric Power, the president of each company and the general manager of each department in the headquarters are responsible (risk owners) for the management of business execution risks. Among such risks, risks with a significant impact on management are regularly reported to the Risk Management Department.
The Risk Management Department reports to the Risk Management Committee chaired by the President, which includes the CIO and other members, on risks that are managed in an integrated manner from the perspective of the entire company based on the reports from the risk owners. The risk response policy is deliberated and decided by the President at the Risk management Committee and the risk owners reflect the response policy in their annual management plans and risk countermeasures.
With respect to the risks involving Group companies, each company understands and assesses its risks, and those that are deemed to have a serious effect on management will be deliberated upon and reported regularly together with management measures to Chubu Electric Power.
The presidents of Chubu Electric Power Grid Co., Inc. and Chubu Electric Power Miraiz Co., Inc. act also as risk owners mentioned above.
Risk Map
Management of Risks Associated with Individual Projects, Such as Investments
Regarding individual projects such as investments, risks are properly managed through risk evaluation at the time of decision-making by the Risk Management Department and through regular review of the status and countermeasure instructions by the Risk Management Committee and the Board of Directors following the execution of these investments.
Basic Ideas of Business Continuity
- The Group designs facilities to be highly disaster-resistant and carries out appropriate maintenance.
- The Group develops a disaster management system to promote early restoration of service and ensure public security, while maintaining and improving response capabilities through drills.
- The Group makes appropriate use of new findings in its constant improvement efforts for a safer and more stable energy supply.
Actions to Continue Operations During Major Disasters
Creating Business Continuity Plans (BCPs)
In order to secure its operations that must be continued during major disasters, the Chubu Electric Power Group maintains and improves its ability to deal with emergencies by making BCPs and continually improving its Business Continuity Management (BCM) framework.
Construction of Disaster-Resilient Facilities
In order to maintain stable supply even during large-scale disasters, Chubu Electric Power has given due consideration to national and local government estimates of damage that may result from a Nankai Trough earthquake as well as reassessments of disaster prevention measures. We have implemented the necessary facility upgrades from the standpoint of quickly securing power supply capacity, maintaining public safety against high-level seismic ground motion, and minimizing damage directly inflicted by the largest class of seismic motion.
Improvement of Disaster Prevention System
When a disaster occurs or is predicted to occur, Chubu Electric Power immediately orders deployment of our emergency preparedness system and taskforces are set up at each workplace. In addition, to reinforce our disaster response capabilities, we have deployed in advance an array of equipment and materials to each workplace for responding to an emergency, including specialized vehicles such as power generating vehicles and portable substations for emergency power transmission as well as emergency communication tools utilizing satellite communication networks. In addition, we have repeatedly conducted training exercises based on large-scale disaster scenarios as part of our efforts to maintain and further improve our emergency response capabilities.
Strengthening Resilience
Chubu Electric Power has strived to enhance the resilience of our electric power infrastructure and construct an electricity supply system highly resilient against disasters. As part of these efforts, we have tackled the following three major challenges to enhance our response to a major disaster.
Systems for Recovery of Facilities
So that we may promptly restore service after a power outage and rapidly disseminate appropriate information to our customers, Chubu Electric Power has worked to improve our system for quickly collecting and sharing site information. In addition, we have strived to ensure the necessary personnel are in place as well as improve management of the service restoration process. We repeatedly conduct training and other exercises in our determination to improve our response capabilities.
Disseminate Information to Customers
We have increased the tools available for disseminating information about service interruptions, which includes power outage status details and service restoration estimates, as we strive to enhance the information communicated. In addition, we are also working to improve our systems and structure so that we are able to more appropriately respond to customer inquiries.
Information Sharing and Coordination with Location Goverments, etc.
We have held discussions on how to best share information and establish systems for cooperation so as to strengthen our capability to collaborate with local governments, external agencies and other institutions during an emergency.