MIZUHO FINANCIAL GROUP, INC.
With the aim of ensuring customers are able to use Mizuho's services with peace of mind, by the end of
Going forward, we will continue to carefully monitor changes in the business environment, fully maintain the effectiveness of our initiatives, and keep up stable operations.
Please see the attachment to this press release for details on our initiatives for stable business operations. Please see the link below for past business improvement plan press releases, progress reports, and supporting materials (Japanese language only).
https://www.mizuhobank.co.jp/release/2022_status.html
Initiatives for Stable Business
Operations
2
Contents
1. Initiatives for stable business operations p.3
2. System failures: Prevention and response enhancement p.4
3.
Utilizing customer and employee feedback /
IT governance / reforming corporate culture p.5
4. Governance p.6
5. Initiatives to maintain effectiveness p.7
3
Initiatives for stable business operations
Where we stand
Maintenance Continuation
Established in the
workplace
Formation and
implementation of initiatives
Establishment of improvement measures in the workplace
Timely recovery in the event of system failure
Continuous improvement using customer and employee feedback
Governance and corporate culture supporting the above initiatives Establishment of structures to consistently prevent large-scale system failures while anticipating changes in the future environment
Improvement measures have been established in the workplace, preventing large-scale IT system failures.
The effectiveness of the improvement measures has been confirmed for each of the areas as mentioned in the following
pages, based on the assessment of external experts.
The effectiveness is maintainable going forward.
Incorporating improvement measures into routine work, maintaining and continuing them while tracking changes in the
business environment
4
System failures: Prevention and response enhancement
IT systems
Enhancement
of response
capabilities
Actions taken Improvement status1
System failure
prevention
Finished all of the following inspections by the end of FY2022 (continuing in FY2023)
No. of large-scale failures: 0
(FY2021: 11, FY2022: 2)
Hardware
inspections
Continued replacement of parts that could cause failures:
Approx. 200 in H1
Incl. no. of hardware-related failures: 0
* (FY2021: 5, FY2022: 1)
Software release
inspections
Thoroughly reviewed software releases and knock-on effects (continuing)
Incl. no. of release-related failures: 0
* (FY2021: 2, FY2022: 0)
Application
inspections
Finished system performance inspection for all 17 operations (expanding and continuing for 28 operations)
Incl. no. of performance-related failures: 0
* (FY2021: 2, FY2022: 1)
Timely
recovery
Finished inspection of recovery methods for all 95 systems (continuing)
No. of cases taking >3 hours: 0
* (FY2021: 7, FY2022: 0)
Actions taken Improvement status1
Timely initial
response and
recovery
Rigorous initial response operations (continuing)
Completed the visualization of systems and operations for all 30 operations (expanding and continuing)
Implemented practical training (continuing)
Completed formulation of announcement text and preparation of announcement posting locations (continuing)
Generally, within 30 minutes from the preliminary report Target range: Within 1 hour
No. of failures causing a transaction to be processed the next day2: 0 (FY2021: 7, FY2022: 2)
A structure that allows for timely notification has been developed; mostly within 1 hour (recently) ATM response
Finished the installation of cameras with speakers at all offices: 1,801 offices
Completed improvements to prevent the capture of bankbooks/ATM cards
No. of ATMs out of service3: 36 units at most (FY2021: 4,318 units)
Capture of bankbooks/cards: 0 (FY2021: 5,244)
1. Actual results of FY2023 H1; for FY2022, actual results from
2. Number of system failures in
3. Due to a network failure between centers that occurred in
Continuing inspections and measures to prevent system failures and ensuring timely response and recovery should they occur.
Continuously preventing large-scale system failures.
Minimized customer impact through timely initial response and recovery in the event of a system failure.
Improved ATM functionalities for safe & reliable customer use.
5
Utilizing customer and employee feedback / IT governance / reforming corporate culture
Utilizing
customer and
employee
feedback
IT
governance
Reforming
corporate
culture
Actions taken Improvement status
Gathering of feedback
and opinions
Tool development/operation in place; maintaining at over
3,500 cases of feedback/month
Communication between frontline offices and Head Office enhanced: Mirai Conference1 (continuing)
Mutual understanding continuously improved between frontline departments/branches and Head Office; approx. 80% of branches recognized improvement in Head Office's approach.
Communication with customers being continued; cases of improvement continuously shared via website2 Utilization of feedback and opinions
Accumulation of improvement actions based on feedback/opinions as a starting point; opened the 'Corporate Desk', receiving phone calls from corporate
customers, etc.
Actions taken Improvement status
Understanding of the
frontline situation
Promotion of communication with frontline personnel
Management-frontline regular dialogue established * IT reforms to go beyond previous improvement and to
drastically improve IT employees' awareness; positive
responses remain a majority/increased from the previous
survey in IT employee surveys Risk and resource allocation * Enhancement of system risk management * Allocation of resources required for system operations
(continuing)
Actions taken Improvement status
Culture
Developed and announced the new Corporate Identity and continuously took measures for dissemination, including via workshops, townhall meetings, etc.
Solicitation and dissemination of employee-driven plans
Employee awareness and scores improving, with some indicators showing recovery to pre-IT system failure levels but with continuous efforts being made to achieve the medium-term business plan goals
The Corporate Identity being further promoted, with a wide range of activities rooted in the Corporate Identity and designed to transform the corporate culture being
continued
Organization
development
Developed an interactive organization development program for managers3 in full scale
1. Dialogue between branches and Head Office with a forward-looking approach to business operations
2. https://www.mizuhobank.co.jp/company/activity/cs/case.html (Japanese language only)
3. Experimental learning program supporting the development of interactive organizational development skills for middle-management towards achieving the 'To-Be' of each office
Development and announcement of the new Corporate Identity and targets for engagement and inclusion scores.
The scores are improving, and the following is in progress: full-scale promotion of engagement with employees and of ensuring that they understand the
Corporate Identity.
Practices enhancing the understanding of the frontline situation and risk management have been established.
Full-scale IT reforms have been launched to ensure further enhancement of IT employee awareness and stable operations in the future.
Structures and infrastructure for gathering/utilizing feedback are being enhanced, and operations have been established. Frontline reputation is also improving.
Improvement cases accumulated through full-scale engagement with customers and employees.
6
Governance
Legal
compliance
Self-governing practices in improving operations have been established, including the continuous enhancement of the business continuity plan (BCP) system and inspection reviews based on changes in the external environment.
Employees' essential understanding has improved through training, personnel exchanges, and the acquisition of qualifications, etc.
Implementing
supervisory
functions
Maintaining and continuing initiatives, such as multifaceted information gathering, enhancement of expertise, and better follow-up with management, while continuing the implementation of an improvement cycle centered on the Board of Directors' policy.
Establishment of the IT/DX (Digital Transformation) Committee in place of the System Failure Response Evaluation Committee to further enhance not only the existing monitoring system focused on risk management but also supervisory functions in covering the group's business aspects.
Actions taken Improvement status
Enhancement of
operation
infrastructure
Review of the BCP system for major operations and continuous training on relevant laws and regulations
Improvement of comprehension levels and
behavioral awareness confirmed
Number of employees with external AML/CFT certificates increasing, totaling over 2,000 employees;
Improvement of most employees who need qualification already qualified
analytical skills
Continuous verification of inspections and inspection results based on risks and changes in the external
environment
Actions taken Improvement status
Multifaceted
information gathering
Continuous communication between outside
directors and executive officers/employees * Actions at left being maintained and continued so that
supervisory functions will be appropriately
demonstrated, with a PDCA cycle centered on the
Enhancement of Board of Directors' policy being used
expertise
Enhancement of personnel allocations and of discussions among executive officers through the appointment of outside directors, including in regard to technological
expertise
7
Initiatives to maintain effectiveness
Continuing to maintain effectiveness while tracking changes in the environment and working to ensure
lessons learned from past events are carried forward.
Maintaining and
continuing
improvement
measures
Incorporating improvement measures into routine work, maintaining and continuing them
while tracking changes in the environment
Leveraging insights gained from IT system inspections to maintain and continue improvements.
Incorporating revisions based on changes in other companies' incidents and external regulations.
Constant enhancement based on customer feedback and employee voices.
Preventing the fading
and ensuring lessons
learned are carried
forward
Implementation and continuation of a month dedicated to looking back on the System
failures, ensuring lessons learned are carried forward across the organization
Exhibition spaces to look back on past system failures and to maintain the memory of the
inconvenience caused to customers and not to let it fade away
- Training for every officer and employee to take action for customers and society
Practical training throughout the group with a sense of realism and urgency
Monitoring
Ongoing follow-up to maintain effectiveness and prevent lessons learned from fading
Continuous improvement of the level of activities, under the leadership of the management
Establishment of the IT/DX (Digital Transformation) Committee in place of the System Failure
Response Evaluation Committee to further enhance the function of supervision not only in overseeing
improvement measures but also in covering the group's business aspects
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