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Risk Management/Compliance

Risk Management

Stance regarding risk management

We seek to understand and manage the range of risks attributable to our business activities, mitigate the damages and losses if such risks were to actually occur though the exercise of appropriate risk management, and maintain and enhance Nabtesco Group’s corporate value. With this stance in mind, we undertake risk management on a group-wide basis.

Corporate Communications Department, General administration department, Compliance Promotion Department, 1, 2

Risk Management Basic Policy

  1. We manage risk while paying attention to trends in financial conditions and business environments.
  2. We manage risk in accordance with the relevant laws and regulations and from the perspective of Nabtesco Group’s social responsibilities, while also striving to disclose information promptly to minimize the impact and losses attributable to incidents that have occurred.
  3. We validate concrete risk management processes after the occurrence of incidents and strive to prevent their recurrence.
Corporate Communications Department, General administration department, Compliance Promotion Department, 1, 2

Reinforcement of Risk Management Systems

We have systems in place to ensure that profits, losses, asset efficiency, quality and disasters, among other matters, are reported to the Board of Directors properly and in a timely manner with respect to the execution of duties. By leveraging these systems, we strive for the early identification of risks and the minimization of losses.
With an eye on the sustainable enhancement of corporate value, we have in place a number of organizations under the direct supervision of the CEO that are responsible mainly for deliberating important matters, including the CSR Committee, Risk Management Committee, Group Quality & PL Committee and Group Environment, Safety and Health Committee.
The CEO appoints chairpersons and committee members and corporate departments perform administrative duties for the committees. Each chairperson is a member of the other three Committees as a member, facilitates collaboration, and provides reports at management meetings such as Executive Officers Committee and Board of Directors regarding the initiatives taken by the Committees periodically (approximately twice a year). By doing so, we manage risks appropriately on a group-wide basis.

Administrative organizations of the Committees
  • CSR Committee (administrative organization: Corporate Communication Dept.)
  • Risk Management Committee (administrative organization: Legal & Compliance Dept.)
  • Group Quality & PL Committee (administrative organization: Quality Promotion Dept.)
  • Group Environment, Safety and Health Committee (administrative organization: Environment & Safety Dept.)
Corporate Communications Department, General administration department, Compliance Promotion Department, 1, 2

Risk Management Activities

Risk Management

The administrative organizations conduct group-wide risk assessments to extract, analyze and evaluate risks once a year, and report results to their respective Committees.
The Committees identify material risks based on the reports and make decisions regarding plans to address the risks. The administrative organizations monitor/audit the measures taken by the audited departments, and provide feedback to them and the Committees. By repeating this process cycle, we properly manage risk.

Risk Management Cycle
リスクマネジメントサイクル
Corporate Communications Department, General administration department, Compliance Promotion Department, 1, 2

Principal Risk Management Activities for FY 2019

The following lists principal risks that are deemed to have potential impacts on the Group’s business performance and financial position.

  1. Risks relevant to the economy and markets
  2. Risks relevant to overseas operations
  3. Risks relevant to large-scale disasters
  4. Risks relevant to exchange rate fluctuations
  5. Risks relevant to procurement
  6. Risks relevant to product quality
  7. Risks relevant to competition
  8. Risks relevant to information security
  9. Risks relevant to intellectual property
  10. Risks relevant to laws, ordinances and regulations
  11. Risks relevant to environment
  12. Risks relevant to corporate acquisition etc.
  13. Risks relevant to impairment loss of fixed assets
  14. Risks relevant to secure human resources

Every year, Nabtesco assesses the risks faced by the Group companies in Japan and in other countries. We identify serious risks, and each department in charge of risk plans and implements measures based on their expertise.

The following are some of the serious risks that have been identified and the measures taken to address them:

Serious risk Effects on the Group Measures Link
Procurement The functional failure or degradation of suppliers due to disaster
  • Suspension of products and services due to difficult or defective procurement
  • Local support for affected suppliers
  • BCP training for suppliers
Click here for details
Information security Information security breach
  • Suspension of business activities and services
  • Establish management rules
  • Implement information security training
  • Establish and operate an information security system
Click here for details
Environment Climate change
  • Increase in costs caused by carbon tax regulations, etc.
  • Physical damage caused by torrential rains, etc.
  • Increasing customer requests for the reduction of GHG emissions
  • Set long-term goals for SBT certification
  • Utilize renewable energy
  • Implement environmental education
  • Awareness raising activities regarding climate change risks for suppliers
Click here for details
Product quality Quality risk
  • Increase in costs due to loss and damage compensation, etc.
  • Lower brand value
  • Establish management rules
  • Obtain quality management system certification at production sites
  • Implement training
Click here for details
Corporate Communications Department, Compliance Promotion Department, 1, 2

Crisis Management (In the event of emergency)

If a serious incident has a significant impact on the Group’s business activities, such as their termination or suspension, the department in charge of the risk reports to the CEO and related departments without delay. The CEO reports to the Board of Directors and Audit & Supervisory Board promptly, establishes an emergency response headquarters and takes command of risk management.
The emergency response headquarters, which will be headed by the CEO as the General Manager, deals with the incident quickly and works to solve it while at the same time reporting to the Board of Directors on the matter, including on countermeasures taken to address the issue.

Specific matters that cause losses for the Group are defined as incidents. We seek to minimize the impact of incidents through the reporting and sharing of information on these incidents through a series of regular meetings.
Reports on the occurrence, details, and causes of incidents as well as measures to address them and the losses incurred, among other things, are provided to the administrative organizations, the Executive Officers Committee and the Board of Directors. By doing so, we share information on the measures to reduce the occurrence of incidents.

The Emergency Response Division
Senior General Manager CEO
Deputy Senior General Manager President of a responsible Group company, Officer in charge of relevant corporate department or General Manager
Members Staff of responsible Group companies and of corporate departments
Administrative organization Departments in charge of relevant risks, and if necessary, relevant departments of responsible Group companies and relevant teams of responsible corporate departments.
Incident Reporting Route
Incident Reporting Route
Corporate Communications Department, General administration department, Compliance Promotion Department, 1, 2

Business Continuity Plan (BCP) Activities

The Nabtesco Group has been working to improve its business continuity plan (BCP) to ensure it is capable of restarting businesses promptly even if its main operation facilities suffer serious damage due to a large disaster or other crises.

We assessed the risks regarding the operation of facilities in FY2015. The results confirmed that the Group and its many suppliers faced the material risk of being hit by a natural disaster such as an earthquake. Consequently, reviewing and improving the BCP became an urgent issue.
In FY2016, we established the BCP Administrative Office, improved the business continuity system for overall manufacturing operations, and conducted a policy review. In FY2017, we began to implement drastic changes to the BCP at our main domestic facilities. In addition, we started to advance procurement BCP initiatives to secure key materials and components necessary for stable production, with an eye toward reducing supply chain-related risks in the event of an emergency.

Resilience Certification for Contribution to National Resilience (30th domestic manufacturer to be certified) Resilience Certification for Contribution to National Resilience (30th domestic manufacturer to be certified)

In FY2018, we installed BCP offices within bases, thereby establishing an organizational structure able to collaborate with the BCP Administrative Office. Then, we started to take action in earnest to achieve the Group-wide mid-term objective of all main operation facilities acquiring resilience certification for contribution to national resilience (the Resilience Certification), which was established by the Cabinet Secretariat in 2016 as a system for assessing the effectiveness of initiatives for business continuity.
As result, the Iwakuni Plant of Toyo Jidoki Co., Ltd., one of our Group companies, acquired Resilience Certification in FY2018, followed by the rest of our domestic manufacturing facilities (9 plants) becoming certified in FY2019.

Corporate Communications Department, Compliance Promotion Department, Procurement Planning Department, 1, 2
Risk Management/Compliance
Risk Management

Stance regarding risk management

We seek to understand and manage the range of risks attributable to our bus...

Risk Management/Compliance
Risk Management

Risk Management Basic Policy

We manage risk while paying attention to trends in financial condition...

Risk Management/Compliance
Risk Management

Reinforcement of Risk Management Systems

We have systems in place to ensure that profits, losses, asset efficiency, ...

Risk Management/Compliance
Risk Management

Risk Management Activities

Risk Management The administrative organizations conduct group-wide risk...

Risk Management/Compliance
Risk Management

Principal Risk Management Activities for FY 2019

The following lists principal risks that are deemed to have potential impac...

Risk Management/Compliance
Risk Management

Crisis Management (In the event of emergency)

If a serious incident has a significant impact on the Group’s business acti...

Risk Management/Compliance
Risk Management

Business Continuity Plan (BCP) Activities

The Nabtesco Group has been working to improve its business continuity plan...

Risk Management/Compliance
Compliance
Response thumb 137 423e

Stance on Compliance

Nabtesco Group Code of Ethics, Handbook for the Nabtesco Group Code of Ethi...

Risk Management/Compliance
Compliance

Enhancement of the Compliance System

According to the Rules for the Group Compliance Promotion System, our Compl...

Risk Management/Compliance
Compliance

Promotion of Compliance

Compliance Education The Group provides various types of position-specif...

Risk Management/Compliance
Compliance

Compliance Committee Message from Outside Corporate

Zenzo Sasaki, Outside Corporate Auditor (Attorney at Law, Harumikyow...

Risk Management/Compliance
Information Security Management

Stance on information security

Taking the increase in information risk factors in recent years into consid...

Risk Management/Compliance
Information Security Management

Information management system

We have information system managers and information security administrators...

Risk Management/Compliance
Information Security Management

Establishment of management rules and regulations

Through the Group’s intranet, we share rules and regulations established re...

Risk Management/Compliance
Information Security Management

Education on information security

Materials for e-learning We provide education on information securit...

Risk Management/Compliance
Information Security Management

Response to information security incidents

We have standards in place to take action in the event of information secur...