Risk Management

Strengthening management of a broad range of risks, through disaster countermeasures, protection of intellectual property, information security and other initiatives.

Risk and Crisis Management Systems

Fuji Electric manages strategic, financial, operational, hazard and other risks in an organized and systematic fashion, based on the Fuji Electric Risk Management Rules, formulated in May 2006. The risks related to each business are analyzed when drawing up each fiscal year’s business plans and included in the creation of those plans.

Fuji Electric established the Emergency Response Headquarters immediately following the March 11, 2011, Great East Japan Earthquake. Respect for life took precedence in our response. Fortunately, none of our employees was hurt in the disaster, but there was some damage to buildings and production facilities at the Fukiage factory (Saitama Prefecture) and the Otawara factory (Tochigi Prefecture). Nonetheless, our rapid response allowed us to restart operations at all production bases by March 24, 2011.

We were able to minimize the impact on business of the rolling blackouts that began in April by adjusting operating days and hours.

Information Security

To protect personal and confidential information, Fuji Electric has formulated internal rules, instituted training programs for employees and implemented various other measures. These measures include acquiring outside certification for companies demanding a high level of information security. As of April 1, 2011, six of our operations (at four companies) had acquired ISMS certification. Also, the Privacy Mark certification acquired by the former Fuji Electric Holdings and the former Fuji Electric Systems was transferred to Fuji Electric through the merger, so currently two companies have this certification.

During FY2010, we also conducted audits of Chinese and Southeast Asian affiliates that were begun in FY2009 with the goal of improving information security. By March 2011, 30 companies had been audited, their status checked and guidance provided. Each company is promoting corrective action and improvements based on the results of these audits.

We also conducted compliance evaluations and provided individualized guidance at six companies in five countries overseas, including in Europe and North America. As a result, each of these companies was able to implement initial upgrades to management documentation, training systems and other operational facets.

We will proceed with and make continuous improvements to such activities across the company, including overseas.

Companies with ISMS/Privacy Mark Certification (As of April 1, 2011)

* The Privacy Mark certification acquired by the former Fuji Electric Holdings and the former Fuji Electric Systems was transferred to Fuji Electric through the April 1, 2011, merger.

Intellectual Property Protection

In response to the globalization of our business, Fuji Electric, based on respect for both the intellectual property rights it owns as well as those owned by other companies, is working to strengthen its business through intellectual property strategies that are aligned with our business and R&D strategies.

On April 1, 2011, Fuji Electric Co., Ltd. merged with Fuji Techno Survey Co., Ltd., a wholly owned subsidiary handling patent applications, so as to unify that company’s patent examination and application functions with Fuji Electric’s business strategy and research and development strategic functions, creating a new structure for stronger business.

Main Measures

1) Strengthen the strategic patent portfolio* through participation by the Intellectual Property Division from the business planning and research and development stages on
2) Establish guidelines for overseas intellectual property rights examination and for responding to systems overseas
3) Establish guidelines for anti-counterfeiting and technology leaks

* Patent portfolio:
The concept of viewing patents held as a single, aggregate body.
This is useful in improving Fuji Electric’s technology position (strengths and weaknesses) vis-à-vis other companies, as well as in establishing business strategies and evaluating competitiveness.

Intellectual Property Activities Fiscal 2010 Results

Fuji Electric focuses on energy and environment, and we moved forward with patent applications related to new energy sources, such as fuel cells and solar cells, as well as patents related to efficiency improvements and resource reductions on power electronics products (power semiconductors, inverters, UPS, etc.) high-efficiency and energy conservation. We placed particular emphasis on strengthening our patent portfolio, with the Intellectual Property Division participating in the process from the business planning and research and development stages on.

Also, continuing from the previous year we focused on monitoring and improving our patent portfolio, exercising patent rights in strategic areas, and preventing infringement of third-party (other company) patents. We also directed attention to issues of concern through meetings for employees responsible for intellectual property, attended by intellectual property officers from Fuji Electric and staff from related departments, and our intellectual property education program. We sought to spread awareness about our new patent information news support system through our education programs and other means.

Our efforts overseas included making preparations at our local companies in China for initiating application of Chinese intellectual property management rules. In addition, we have implemented human resources training in China that covers intellectual property. We are also proceeding to establish guidelines for dealing with counterfeiting and technology leaks in China.

Number of Patents Held by Region

Number of Patent Applications by Region