Risk Management

Risk Management

As well as reviewing the impact of each identified risk on business continuity and the effectiveness of countermeasures, we conduct regular risk assessments in all departments to identify new risks that may arise as social situations and the business environment change.

The results of risk assessments are discussed by the Sustainability Committee, which reports its findings to the Board of Directors. We are continuously striving to strengthen risk countermeasures and business continuity plans to ensure that they are thorough.

Major risks and countermeasures


Risk classification

Possible situation

Initiatives for risks


Politics and economy

Restrictions on business activities due to the impact of policies of countries and regions on economy, industry, security, etc.

  • Monitoring of information on policies of countries and regions

  • Alternative measures for sales, production, import/export, services, etc., to ensure preparedness for various possible restrictions

  • Prior consideration of division of labor



Stagnation of business activities due to clusters of infections within the Company, travel restrictions to other countries and regions, etc.

  • Operation of a countermeasure council chaired by the President

  • Thorough implementation of infection prevention measures at each business site

  • Consideration of alternative measures to ensure preparedness for possible restrictions on business activities


Market needs

Long-term market stagnation or poor financial performance of the Company due to inability to keep up with rapid changes (increase or decrease) in demand

  • Identification of market and customer trends

  • Periodic review and consideration of countermeasures at executive meetings, etc.


Products and quality

Failures of customers’ products due to defects of the Company’s products; deterioration of trust due to occurrence of safety or environmental incidents

  • Investigation of causes of defects and thorough implementation of activities to prevent recurrence

  • Promotion of product safety design and product quality improvement measures


Intellectual property

  • Infringement of the Group’s intellectual property rights by third parties

  • Infringement of intellectual property rights of third parties

Collaboration among various departments led by the intellectual property strategy department and with external experts and responses


Response to environmental issues

  • Deterioration of social credibility due to occurrence of environmental contamination incidents

  • Stagnation due to inadequate compliance with environmental laws and regulations of countries and regions

  • Thorough management, inspection, etc. based on ISO 14001

  • Grasping of laws, regulations, and ordinances of countries and regions


Procurement and production

Stagnation of production activities and delivery delays, cancellation of orders received, etc. due to delays or stoppages of the supply of procured parts

Preparation of alternative measures by strengthening daily collaboration with customers and business partners; shift to procurement from multiple vendors



Decline in product competitiveness and poor financial performance due to inability to lead or keep up with competition in technological development

  • Aggressive and effective R&D investment

  • Promotion of joint research with external research institutions



Administrative penalties due to non-compliance with laws and regulations of countries and regions, need to pay compensation for damage, and deterioration of reputation and trust in society

Regular monitoring by the Compliance Committee and internal audits, etc.; establishment of points of contact for consultation with external experts


Human resources

Stagnation in securing and developing human resources; decline in competitiveness due to outflow (retirement) of excellent human resources

  • Promotion of creation of safe and comfortable workplaces and health & productivity management

  • Expansion of in-house training programs


Large-scale disaster

Stagnation of production and parts supply due to damage to the Group’s production sites and business partners

  • Formulation of production BCP and a manual for large- scale disaster countermeasures

  • Establishment of alternative production systems and strengthening of collaboration with suppliers


Information security

System shutdown and information leakage due to cyber-attacks and unauthorized access, resulting in business stagnation and deterioration of social credibility

Continuous improvement led by the Information Security Committee in terms of both employee awareness and countermeasures for systems

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