Risk Management

To guide our work on managing risks, we have developed the Risk Management Policy that outlines our basic approach to prevention and handling of risks that may hamper the execution of the Group’s business, and the Risk Management Regulations that set forth risk management organizations and roles.
We convene the Risk Management Committee as an advisory body for risk management twice a year, to regularly check the situation of risk surrounding the Group’s business, including changes in domestic and overseas circumstances. We also formulate the groupwide risk management plan and discuss matters such as the promotion of BCP (Business Continuity Planning) and BCM (Business Continuity Management). The result of discussion at the Risk Management Committee are reported to the Board of Directors.

■Structure chart

Promotion of global risk management

Monitoring of management status of critical risks (nine global risks) per business site

To enable comprehensive worldwide risk management for the entire NTN Group, we selected nine risks as Global Risks that are common to both domestic and overseas subsidiaries and expected to cause major impacts on management if they occur.
The management status of nine risks of domestic and overseas subsidiaries is regularly monitored via our database, and we assess the status according to the common global standards we have developed. Based on the assessment results, we identify the groupwide status of management, and push ahead with necessary measures including support for development of the Company’s internal rules.
The Risk Management Committee makes periodic revisions and checks for global risk selections in response to changes in the environment.

■Global risks

1. Leakage of confidential information
2. Computer virus/cyberterrorism
3. Violation of antimonopoly laws
4. Natural disaster
5. Fire disaster/explosion
6. Issue of human rights
7. Industrial accident
8. Complaint about product quality
9. Violation of bribery-related laws

Promotion of BCP/BCM

Completion of formulation of BCP for early recovery at all domestic production sites

We have been developing the BCP/BCM structure designed to handle a major earthquake in Japan.
In the fiscal year ended March 31, 2019, we have completed the formulation of BCP to enable early disaster recovery at all domestic production sites which produce products for customers.
Moreover, we have started providing BCP training to assess the effectiveness of the formulated action plans at business sites where BCP formulation has been completed. At the same time, we are promoting the development of BCM (the training was performed in five business sites in the fiscal year ended March 31, 2019).
In the fiscal year ending March 31, 2020, while continuing with BCP training, we will also put our efforts into formulating BCP as a part of supply chain management, for business sites that produce products shipped to the Group (in-house processed products) and each logistics unit.