Corporate Governance | Crisis Management Structure

Nomura has drawn up the Nomura Group Crisis Management Policy to minimize the impact of natural disasters, fires, and other crises, both in Japan and overseas, and to ensure operations return to normal as quickly as possible following such incidents. In addition, the Nomura Group Crisis Management Committee is responsible for Group-wide crisis management plans and action programs.

One specific measure has been the creation of an employee safety confirmation system, which in any emergency situation (following a natural disaster, for example) will enable the Crisis Management Committee to confirm the safety of all Nomura Group employees as well as their family members. In addition, ongoing endeavors are also being made to foster awareness of crisis management through education and practice drills.

Nomura Group Crisis Management Committee

The Crisis Management Committee is chaired by an executive officer nominated by the Group CEO, and is comprised of crisis management officers of each Group company. Outside of emergencies the Committee functions as the governance entity for both crisis management and business continuity management, and during an emergency it will work to resolve the crisis by creating a task force and closely coordinating a response with the department affected and other supporting departments.

Nomura Group's Basic Policies for Crisis Management

From an awareness that crisis management is vital and necessary to Nomura Group's sustainable growth, when not dealing with a specific crisis all Group companies implement strategies to prevent crises before they occur. The basic policy in the face of a crisis is to take appropriate action quickly and establish a clear line of command.

BCP (Business Continuity Plan)

Nomura Securities Co., Ltd. and other group companies have already drawn up Business Continuity Plans (BCPs), and both backup offices and backup data centers have been established to ensure the minimum necessary level of business continuity should a disaster strike. In addition, the Nomura group's BCP is now under development in preparation for a major earthquake that could strike Tokyo, or the potential outbreak of a new strain of influenza.

Emergency contact systems

Group companies in Japan have instituted systems to ensure employee safety and an emergency contact network that a group command center will oversee. There is also a group contact system.

Crisis drills

Drills are essential to maintain and improve crisis management routines and business continuity.

Nomura Group companies use various drills to identify shortcomings and refine their plans.

Strengthening Our Response to Disasters

We have been stepping up our preparedness for major disasters following the lessons learned from the earthquake and tsunami disaster that struck Japan in March 2011. In FY 2011/12, we focused efforts on the following initiatives.

1. Upgrading of communication methods
   • Deployed satellite phones, wireless radio system and other communications equipment
   • Enhanced employee safety confirmation system
   • Improved public address system in the head office building
2. Reinforcement of emergency supplies
   • Expanded stored supplies of water and food
   • Established an area-by-area strategy for emergency supplies
   • Distributed emergency kits to all employees
3. Implementation of earthquake-resistance measures
   • Fixed furnishings and fixtures in place
4. Creation of evacuation methods and procedures
   • Distributed disaster card that specifies our initial response procedures for a disaster
5. Revisions to rules and manuals
   • Shifted decision-making authority in a disaster to onsite supervisors (department and branch office heads)