Message from the President Aug.2011

A phrase “A state of emergency continues even if the crisis is over” is a prerequisite which the New Mid-term Management Plan “Co-creation 21” is based on. This means that although we have manage to overcome the crisis following the Lehman Shock, we should be prepared to face a similar crisis again which may occur again anytime in future, and make what we have learned from the crisis as our strength.

In that sense, we can say that “Co-creation 21” itself is a part of the risk management. Due to the recent earthquake and nuclear power plant crisis, idea of such risk management had been emphasized by individuals, company and government. There said to be two kind of risk management. One is called “risk management” which is to be prepared, prevent, or prevent it from happening again of possible crisis. The other is called “crisis management” which is how to deal with the crisis when it occurred.

In our company, what we have done during the two and half years, from the Lehman Shock of September 2008 to February of 2011 which we have declared the end of crisis, were the crisis management. We have taken such measures as the concentration of sales efforts, promoting job assignment, and cost cutting efforts in order to sustain employment. And main theme of the “Co-creation 21” is to be prepared for next, un-wanted, crisis with the experiences we learned from this crisis management, and strive on the task for growth which we have recognized through the experiences from the crisis.

The crisis management is difficult task since it had to be carried out under the crisis conditions, but it is rather easier to focus on the ultimate target of escaping from the crisis. On the other hand, since the risk management is something you have to strive under the normal conditions or, at least, after escaping from the crisis condition, we tend to put it off although we know it had to be done.

So I think that taking prompt action in order of priority without putting them off is a responsibility of management.