Improving cooperation among companies with regard to their Business Continuity Plan (BCP) and Business Continuity Management (BCM)

This policy proposal outlines Keidanren's efforts to strengthen the cooperation among companies in terms of Business Continuity Plan (BCP) and Business Continuity Management (BCM) following the Great East Japan Earthquake, both in an effort to enhance disaster prevention and reduction and reinforce the competitiveness of the Japanese business community.

The proposal focuses on improved cooperation regarding BCP and BCM in three categories - "Cooperation among companies constituting supply chain," "Cooperation within district," and "Cooperation within industry." It has identified issues and suggested necessary actions for each category from two perspectives: "Efforts by companies and the business community" and "Efforts by public administration."

Summary
Since the Great East Japan Earthquake, Keidanren has deepened its commitment to disaster prevention and reduction by compiling proposals titled "Toward a More Resilient Society: Further actions of the business sector and government" in March 2012 and "Enhancing Effectiveness of Business Continuity Plan (BCP)" in February 2013.

Through these efforts, business continuity plan (BCP) and business continuity management (BCM) of individual companies have been functional to a certain extent and making steady progress. In the meantime, however, it has become apparent that cooperation among companies is not necessarily sufficient. It is essential to improve cooperation among companies with regard to their BCP and BCM, as wide-range and massive natural disasters, such as Tokyo inland earthquakes and Nankai-Trough megaquakes, could occur in the future.

Keidanren has now compiled a proposal focusing on improved cooperation regarding BCP and BCM in three categories -- "Cooperation among companies constituting supply chain," "Cooperation within district," and "Cooperation within industry." It has identified issues and suggested necessary actions for each category from two perspectives: "Efforts by companies and the business community" and "Efforts by public administration." These actions are summarized below.

1. Efforts by companies and the business community
(1) Cooperation among companies constituting supply chain

• Make information of company and its business partners visible by utilizing information technologies
• Identify priority items to be restored immediately in the event of natural disasters
• Share the information with business partners

(2) Cooperation within district

• Work with district councils
• Conduct district-wide joint emergency drills
• Sign cooperative agreements with local governments

(3) Cooperation within industry

• Establish industry-wide guidelines regarding BCP and BCM
• Conduct joint emergency drills
• Consider standardization (e.g. parts regarded as noncompetitive)

2. Efforts by public administration
(1) Support for cooperation among companies constituting supply chain

• Provide support for small and medium-sized enterprises to establish their BCP and BCM
• Pick out basic elements to be included within their BCP and BCM

(2) Support for cooperation within district

• Encourage local governments and companies to strike cooperative agreements
• Provide support for securing storage for stockpile reserves and emergency power sources

(3) Support for cooperation within industry

• Government needs to be involved and coordinate in the process of establishing industry-wide BCP and BCM
• Promote standardization (e.g. parts regarded as noncompetitive)

(4) Cross-sectional support for various cooperation

• Ensure communication regarding disaster risks including provision of nationwide education and raising awareness of disaster prevention
• Promote deregulation in terms of disaster prevention and reduction
• Promote open-data policy for information held by the national and local governments about disaster prevention and reduction
• Send out information on disaster-prevention technologies and know-how developed in Japan to the international community as a joint effort between the government and private sector

Keidanren believes the strengthening of cooperation among companies in terms of BCP and BCM will not only contribute to disaster prevention and reduction but also reinforce the competitiveness of the Japanese business community. Therefore, Keidanren will continue to proactively carry out efforts for the reinforcement of business continuity through enhancement of cooperation among companies. As part of such efforts, Keidanren will include additional initiatives for disaster prevention and reduction when reviewing the Charter of Corporate Behavior and its Implementation Guidance.