January 5, 2009 (Amended)
Japan Securities Depository Center, Inc.
To provide safe, highly efficient and usable services for participants, JASDEC Group (Japan Securities Depository Center, Inc. and JASDEC DVP Clearing Corporation (JDCC)) established emergency preparedness plans to respond to system problems, distributed a "Manuals for System Problems" for users, and has performed backup system training exercises to simulate responses in case of a critical failure of the main computer.
However, in recent years, we have recognized the need to develop a Business Continuity Plan (BCP) that encompasses significant business disruption (SBD) caused not only by system failures, but also by terrorist acts, earthquake or other natural disasters.
Therefore, adding to the emergency plans for system problems, we have updated the Group’s basic BCP policy to both prepare for and respond to events of varying scope, including natural disasters such as earthquakes and fires, and terrorist acts.
We are committed to disclosing as completely as possible how our BCP addresses the possibility of a future business disruption to related entities, such as JASDEC participants, and have outlined our basic policy as follows.
The JASDEC BCP outlines a range of SBD scenarios, including such possibilities as the JASDEC group main office becoming inoperable, JASDEC group system problems, suspension of operations of JASDEC participants and related entities, and failure of social infrastructure such as loss of electric power supply, communications and transportation services. We anticipate three kinds of SBD scenarios—regional disasters, local disasters and system problems—and have planned the necessary steps to ensure emergency preparedness in each case.
The policy applies to officers and employees of the group, dispatched employees of the group, and staff of system developers/operational support businesses.
For JASDEC participants and related entities, the group explains the BCP to ensure they understand requirements and maintain communication networks in the normal course of their activities.
Regional disasters, such as earthquakes, storm and flood damage, flu pandemics, and terrorist acts, would prevent the operation of the group and JASDEC participants and related entities as a whole. They would also cause failure of social infrastructure such as electric power supply, communications, and transportation. Moreover, we anticipate that JASDEC group systems may develop problems.
In the event of regional disasters, the following actions will be taken in principle;
1) Establishment of a Disaster Countermeasure Office,
2) Collection of information and identification of the situation by assessing the nature and extent of the disruption,
3) Decision on appropriate measures,
4) Assurance of communication connectivity to JASDEC participants and related entities,
5) Activation of Alternative Operations (continuation of operations at our alternative office,) and
6) Arrangement for rapid recovery and timely resumption of regular operations.
In the event that the main office becomes inoperable due to a regional disaster, the group will establish alternative arrangements at our alternate office to continue operations as well as respond to inquiries from outside organizations and individuals.
When system problems occur, the group will take measures as outlined below in "(3) System Problems."
Local disasters, such as fire, terrorist acts, and partial failures of social infrastructure, are those events causing a SBD that affects only the group’s ability to do business, with JASDEC participants and related entities still able to conduct business as normal.
In the event of a local disaster, the group will take actions as outlined above in "(1) Regional Disasters" and recover and resume business operations as soon as possible, taking into consideration the fact that JASDEC participants and related entities are ab;e tp conduct operations as normal.
System Problems pertain to critical failure of the main computer center of the group.
In the event of system problems, the group will establish an Accident Countermeasure Office for system problems and in principle will take actions as listed above in 1)~6) of "(1) Regional Disasters".
Notes
a. For "5) Activation of Alternative Operations" in "(1) Regional Disasters," the group maintains backup systems in a backup center of JASDEC to enable a rapid continuation/recovery of operations.
b. By connecting the main system center and the backup center with high-speed dedicated communication lines, data from the main computer can be mirrored in the backup center almost immediately.
c. In the event that the main computer center becomes inoperable due to system problems and the recovery effort is expected to take a long time, the group will switch operations to the designated backup center. The estimated resumption time for business operations using the backup system is within 90 minutes.
The committee, during the normal course of its activities, will identify potential risks surrounding the group and reviews effective appropriate preparedness plans for them.
In the events of regional disasters, local disasters, and system problems, the group will establish a Disaster Countermeasure Office to take corresponding actions for continuity of business operations, including assessment of the damages, and assurance of communication connectivity to JASDEC participants and related entities. (In the event that only system problems occur, an Accident Countermeasure Office will be established.)
In the event of disaster or emergency, the group will ensure the physical safety of group personnel as soon as possible, and secure key operating staff to implement the BCP. The group operates a safety confirmation and emergency contact system.
In order to secure communication methods during emergencies, on top of normal operational channels and modes of communication such as telephone, fax, and e-mail, the group will utilize a number of communications options, including emergency telephone priority service, JASDEC TARGET, Integrated Web terminals, and message centers on JASDEC’s Web site.
The JASDEC group will establish alternative arrangements at an alternate office to continue operations as well as respond to inquiries from outsiders in the event that the main office becomes inoperable.
The group replicates and stores data in a secure main data center. In addition, the group also maintains a remote backup system. In the event that the main system (computer center) becomes inoperable due to system problems, the group will switch operations to the backup system (center) in accordance with "(3) System Problems."
The group will at least annually conduct exercises switching to the backup operation system to ensure continued connectivity with JASDEC Participants and related entitie, and will endeavor to handle the procedures for the resumption of business operations as effectively as possible in the event of a SBD.
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