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.
- 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.
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 affect the system integrated with groups inside and outside Japan.
- Sharing of idea/procedure of raising awareness of risk, evaluation, and formulation of measures;
- Construction and operation of the management system adapted to individual group companies;
- Skill-up of risk assessment and measures
We appoint the President of NGK SPARK PLUG CO., LTD to “Chief Administrator” of risk management and the Director of Risk Management Department to “Promotion Manager”. The CSR Committee, including all Directors and Chairpersons of individual expert committees, regularly evaluate the operation and results of group-wide activities and make improvements in risk prevention and improvements about handling them.
We evaluate risk items as group-level risks in each of the following areas:
|Human rights and labor practice||Harassment|
|Long hours of work|
|Labor dispute, Strike, Demonstration|
|Safety and Health||Occupational accidents|
|Violation of laws|
|Information security and Confidential information management||Information system failure|
|Leakage of confidential information and personal information|
|Fair trade and Ethics||Corruption|
|Violation of laws|
|Infringement of intellectual property rights|
|Fire and explosion|
Quantitative evaluations are made on the two axes; frequency of occurrence and degree of impact. Based on these results of the assessments, we take initiatives to prevent risks by selecting risks that need to be addressed on a group-wide basis and monitored by the CSR Committee.
Group Unified Priority Risk Initiative Handling
In Fiscal 2018, we continued to strengthen our work to promote BCM (Business continuity management) and to prevent corruption and made it a top priority.
BCM Advancement (Business Continuity Management)
In preparation for possible damages caused by earthquakes and other large-scale disasters, our company conducts business continuity management activities. To minimize damage in the event of a large-scale disaster, resume production as soon as possible in the event of an emergency shutdown, and maintain customers’ supply chain, the entire group is involved in BCM Activities and Disaster Prevention and Disaster Reduction Activities.
The individual division has its own BCP (Business Continuity Plan), which defines initial response and recovery procedures.
We are continuously working to minimize the damage to IT systems and improve recovery time when disaster occurs. To minimize damage, we have been transferring the working environment for the internet base and workload system respectively to a highly isolated data center. To improve recovery time, we utilize backups in the cloud so that we can recover and restart systems in an undamaged environment.
By uniting the systems of our domestic group companies, we can integrate with server infrastructure in order to ensure common BCP practices.
By implementing more effective, practical and regular education and training, we are taking measures to better respond when disaster strikes.
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 securing systems that respond to the BCP through sharing our objectives with each supplier and making efforts across the entire supply chain.
For BCP in each business department, we set a time limit for recovering our main products and established a system for early recovery by formulating an action plan for the recovery team.
Implementation of BCP Training
We conduct BCP training every December for the purpose of resuming business as soon as possible in the event of a disaster. BCP training is designed to improve the effectiveness of BCP by formulating recovery plans for major businesses, organizing recovery teams, and implementing recovery activities. To prepare for a situation where our internal network is unavailable, we conduct training on communicating with the task force using IP wireless equipment and sharing information via the Internet.
Disaster Prevention and Disaster Reduction Activities
- <Implementation of company-wide disaster prevention drills>
- In anticipation of the Nankai Trough Megathrust Earthquake, we are implementing the Company-Wide Disaster Prevention Drill jointly with domestic group companies. We practice for an early recovery in the event of an emergency by conducting evacuation drills, confirming the safety of employees, conducting initial firefighting activities, and checking the damage to facilities and equipment, and disaster status.
- <Strengthen Earthquake Resistance>
- In order to ensure the safety of our employees and the continuity of our business, we have completed seismic-resistant upgrades of the buildings at our business sites in preparation for a major earthquake.
- <Raising Employee Awareness of Disaster Prevention>
- In order to enhance employees' disaster response capabilities and contribute to business continuity, we distribute a disaster prevention booklet, 'NGK Spark Plug Disaster Prevention' to raise awareness of how we act in times of disaster.