Risk Management

Risk Management System and Operation

We have adopted our risk management rules aimed at preventing risk occurrence in advance and minimizing the damage in case of a risk occurrence. The Risk Management Committee has been established under the CSR Committee, chaired by the CEO, to be responsible for overall group risk management at normal times and for response to occurred risk.
The Risk Management Committee has a Risk Monitoring Subcommittee and a BCP Preparatory Subcommittee within the Committee to select and evaluate risks and to monitor risk reduction efforts, as well as to work toward the development of BCP across the IDEC Group. A Hotline Contact has also been established within the Committee to maintenance an internal reporting venue and respond to reporting events.
The Risk Management Committee reports these initiatives at the CSR Committee, which meets twice a year, and the CSR Committee reports them to the Board of Directors. The Risk Management Committee can directly report important events such as reporting events or information to the Board of Directors as necessary, assuring risk information is properly conveyed to the management.

■　Internal Reporting

Risk Monitoring Subcommittee

Concerning high-risk events shown on the risk map, an annual risk reduction target is set for each department in charge, and the progress toward attaining the target is checked every six months: in the first half and the second half of the fiscal year. At the end of the fiscal year, we review the risk map showing high-risk events, and identify next risk events that should be addressed on a priority basis. We also manage risks, including climate change risks, and regularly check the response status of the responsible departments.

Business Continuity Planning (BCP)

The Risk Management Committee’s BCP Preparatory Subcommittee was established to advance business continuity planning to prepare for earthquakes and other natural disasters, which represent highrisk events for our Group. This team develops our BCP and the basic policies and initial action flows for disaster response, in coordination with manufacturing department and factories.
In addition, we map out the initial actions to be taken by each emergency task force member in a disaster, and create manuals and checklists for guiding those actions. We also routinely review our disaster countermeasures, and use the corporate intranet to communicate information for raising the disaster prevention awareness of all employees.

Our BCP Approach

Business continuity planning involves maintaining a BCP to ensure that business operations can continue to function in the event of a disaster or other emergency. The IDEC Group goes a step further by also defining the initial actions to be taken in a disaster prior to the BCP implementation phase, and by routinely developing disaster countermeasures. In line with our basic human resource policy of cherishing our people, we have established a basic policy for crisis response that places top priority on the safety of our employees and their families at all times.
In the BCPs formulated for each manufacturing site, the second priority after safety is to ensure that our products can continued to be delivered to customers following a disaster. These plans are designed to limit shipment stoppages to no more than one week.
Other ongoing actions include creating manuals outlining step-by-step procedures for the entire flow of emergency response actions, and maintaining disaster-resilient communications infrastructure, systems for checking the welfare of our employees and supplier staff, and stocks of emergency supplies.

Risk Map and Identification of High Risk Events

The Risk Monitoring Committee regularly identifies and evaluates risks based on the assumed risk events that may negatively impact the IDEC Group’s continued business expansion and corporate value enhancement. Concerning each risk event, an evaluation questionnaire is conducted using the “probability of occurrence,” “magnitude of damage” and “impact” as measures, and the results are plotted on the risk map relative to the assessment.
The risk events evaluated include climate change risks that the Environmental Strategy Committee has judged to be significant issues.
Also, risk events that have a high probability of occurrence are considered high-risk events. Each department responsible for a particular high-risk event is assigned a risk reduction target, and gauges its progress toward the target on a semiannual basis.