Risk Management

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Risk Management Policy

We will identify the risks that could have serious impact on our business activities based on the comprehensive understanding of the risks related to our Group, and take necessary measures to prevent the occurrence and recurrence so that the risks are reduced to an acceptable level. Even if such a risk should occur, we will also strive to restore and continue smooth business operations, thereby maintaining trust from our stakeholders.

Action Guidelines

  • We conduct our activities with top priority on the protection of human life.
  • We strive to prevent factors that could affect business continuity.
  • We minimize impact on related parties.
  • We strive for rapid restoration of business operations and stable supply of products and services.
  • We take measures to prevent the recurrence of risks.

Basic Philosophy

We are promoting construction and operation of the companywide risk management system as the strategy coping with the complex and diversified business environment and risk. Based on the following basic ideas, we will continuously make our efforts to effectuate the system integratedly with groups inside and outside Japan.

  1. 1.Sharing of idea/procedure of raising awareness of risk, evaluation, and formulation of measures;
  2. 2.Construction and operation of the management system adapted to individual group companies;
  3. 3.Skill-up of risk assessment and measures

Promotion system

Appointing the President of NGK SPARK PLUG CO., LTD to “Chief Administrator” of risk management, and appointing the Director of Risk Management Department to “Promotion Manager”, the CSR Committee including all Directors as members is expected to evaluate operation/results of group-wide activities based on the following items for review on the management in the next term.

  1. Classify the risk into hierarchies including management level, Department/Division level, and working level for clarifying the respective coverages of risk management. For the group management risk level, “Unified priority risk measure for the whole groups” is selected for evaluation on the countermeasure status.
  2. Evaluate each status of risk management system construction/operation in the respective group companies.
  3. Instruct correction of descriptions as described in the items 1 and 2.

In the fiscal 2017, promotion of BCM (Business Continuity Management), and Anti-Corruption are specified as the “Unified priority risk measure for the whole groups”.

Classified risk

Human rights and labor practice Harassment
Discrimination
Long hours of work
Labor dispute, Strike, Demonstration
Safety and Health Occupational accidents
Traffic accident
Mental health
Environment Environmental pollution
Violation of laws
Information security and Confidential information management Information system failure
Cyber attack
Leakage of confidential information and personal information
Fair trade and Ethics Corruption
Violation of laws
Infringement of intellectual property rights
Export management
Accounting problems
Procurement
Product Defective product
Product liability
Accident Natural disaster
Infectious disease
Fire and explosion

Promotion of BCM (Business Continuity Management)

Formulation of various BCPs (Business Continuity Plan)

In preparation for various risks caused by earthquake disaster, We have been addressing the issue of BCM (Business Continuity Management) for continuing business operations while minimizing damage, if any, caused by the risk. Establishment of contingency framework, and handling procedures necessary for functions required to take timely measures against the disaster, for example, business departments, IT, and procurement, are specified in BCP (Business Continuity Plan), clarifying the time-limit and the target state. We conduct the training intended to confirm and disseminate effectiveness of the formulated BCP annually. The CSR committee further confirms the task and degree of effective improvement, which have been revealed by the training for taking countermeasures and reviewing.


<BCP on IT>

We are taking preventive measures against the harmful influence on the business continuity in the case of disaster by reinforcing machine chamber to improve the earthquake resistance, installing base isolation stand, utilizing cloud service, changing the backup storage method, and introducing emergency power supply equipment and solar power generation system. In preparation for disconnection of communication, we formulate the recovery plan for early recovery.


<BCP on procurement>

We have promoted countermeasures that include multiple purchasing for key products including materials and parts.
A diverse range of materials and parts is required for manufacturing NGK SPARK PLUG CO., LTD.’s products. Therefore, we are trying to secure systems that respond to the BCP through sharing our objectives with each supplier and making efforts across the entire supply chain.

Making preparations for large-scale earthquakes

There has been concern over large-scale earthquakes in Chubu region where many business bases of our group companies are located. We have relocated the office likely to be suffered from the tsunami, as well as reorganization of plants of the group companies in consideration of possible damage under adverse influence of the large-scale earthquakes. “Earthquake BCP Guideline” specifies the initial measure in response to the earthquake and business continuity actions. The initial measure covers actions of employees, for example, evacuation and confirmation of employees’ safety, provision of emergency response headquarters, in-house fire brigade, and stockpile management. The initial measure will be confirmed through the emergency drill held by the respective plants, business offices of our company, and group companies in Japan on the same day in November every year. The business continuity action covers setting of target time for recovery of the important business operation, drafting the recovery plan, organization of team for recovery work, and exercise of BCP.

Disaster drill
AED training
Training for collecting disaster information