Business Continuity Management (BCM)

At Festo, we have had a risk management system in place for more than 10 years, in which significant risks are identified at an early stage, risk owners are defined and programmes of measures to minimise risk are pursued. In the areas of strategy, operations, finance and compliance, the main risks are examined with the responsible units such as sales, production and logistics in a standardised process that is carried out regularly. In addition, the organisational units can also use the "ad hoc risk reporting" tool.

The feedback, for instance from the production and logistics units on topics such as fire protection, delivery capability and stockpiling as well as cyber security, is condensed and discussed with the experts from the respective areas at headquarters. This also involves checking whether adequate programmes of measures have been set up to avoid possible risks and, if necessary, additional measures are initiated by the departments. The entire process and organisation of risk management is regularly examined by auditors in accordance with the IDW 340 n. F. standard [German Institute of Public Auditors].

Crisis management is the overall coordination of an organisation's response to a crisis in a timely, effective manner. The aim is to avoid or minimise damage to the organisation's profitability, reputation or ability to act. Crisis management at Festo follows a structured process with the handling of local emergencies by the local emergency response organisation and, if necessary, rapid escalation to corporate crisis management.

The management board manages the corporate crisis team. The emergency and the corporate crisis teams are staffed 24/7 with the management, information management, infrastructure, situation/documentation and corporate communication roles. Depending on the scenario, this permanent team is supplemented by experts. Regular tests are conducted to check if raising the alarm via FACT24 and team cooperation are effective.

In recent years, we have expanded our production infrastructure in line with the "local for local" principle so that we can manufacture products at various locations in the regions Europe, Asia-Pacific and the Americas, ensuring self-sufficiency and redundancy.

Thanks to our flexible logistics network and the use of alternatives routes, we can ensure deliveries from suppliers and deliveries to customers at all times and along the entire value chain.

Our highly varied product portfolio enables us to offer products according to demand and to provide our customers with alternative solutions in the event of restrictions on individual components.

A high level of information security is essential for the competitiveness of Festo and is the basis for our customers' and partners' trust in our technological leadership in the face of the ongoing digitalisation of our personal and professional lives. Festo has established a state-of-the-art security program to protect our customers' processes and infrastructure as well as our own from cyber threats.

All measures are selected and implemented in accordance with the industry standards for information security, in particular BSI Basic Protection and the NIST Cybersecurity Framework. All controls are regularly reviewed and adjusted according to the current threat and risk landscape. This continuous improvement process is ensured by an information security management system that has been certified according to ISO 27001.

Safety – in particular occupational health and safety – is a fundamental part of the corporate philosophy at Festo. The compliance with and implementation of safety requirements are intended to protect our employees and the company’s assets. All areas are therefore supported by safety experts who provide assistance with establishing a safety-oriented occupational safety culture and occupational safety management.

The aim is to continuously reduce the risk of accidents and health hazards. Hence Festo has already implemented the ISO 45001 occupational health and safety management system at its Budapest, São Paulo and Shanghai sites.