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
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.
- 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.
- Evaluate each status of risk management system construction/operation in the respective group companies.
- 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”.
|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|
Establishment and implementation of company-wide risk management
[Group unified priority risk initiative handling]
In Fiscal 2017, we have strengthened the work to promote BCM (Business continuity management) and to prevent corruption and made it a top priority.
[Expanding to group companies]
In Fiscal 2017, in regard to company-wide risk management, we have organized the formulation of a risk management system and formulated a program which handles important and urgent issues. We have also expanded our formulations of risk management to include group companies.
[Overall review by the CSR Committee]
Our company president reviewed our risk management with the CSR Committee.
BCM Advancement (Business Continuity Management)
Formulation of various BCPs (Business Continuity Plan)
In preparation for possible damage caused by earthquakes, we have been implementing BCM (Business Continuity Management) including taking steps to mitigate the effects of natural disasters and to ensure production can resume as soon as possible after a disaster. For departments such as business, IT, and procurement which are required to take timely measures against disaster, initial responses and restoration procedures are specified in BCP (Business Continuity Plan), clarifying the time-limit for resuming service to our customers.
As for production recovery, 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.
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 will be utilizing cloud services for backups so that we can recover and restart systems in an undamaged environment. 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 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 have been concerns over large-scale earthquakes in the Chubu region and the various possible damages that are expected. The “Earthquake BCP Guideline” specifies the initial measures in response to earthquakes and business continuity actions. The initial measures cover employee actions like evacuation and confirmation of employees’ safety, provision of emergency response headquarters, an in-house fire brigade and stockpile management. These initial measures will be rehearsed through emergency drills held by the respective plants, business offices of our company and group companies in Japan on the same day in November every year. Business continuity actions cover setting of target times for recovery of important business operations, drafting recovery plans, organization of teams for recovery work, and exercise of BCP and we conduct BCP drills in December every year for improving the effectiveness of business continuity plans. Also, considering the concern over pandemics such as new strains of influenza, we created BCP guidelines for new strains of influenza, etc. to prevent second-hand infections and formulated business continuity plans.