We maintain a forward-looking risk management structure that actively involves management in order to support appropriate risk-taking by executive staff.
We facilitate assertive governance with elements of bold risk-taking.
The Risk Management Committee convenes annually and is headed by the CEO. The committee, which is attended by outside directors and legal counsel, approves the annual activity plan and works to establish, promote, and maintain the risk management structure by controlling risks throughout the entire Group.
We prevent risks and minimize losses by instituting controls for risk categories, managing and reducing unavoidable risks, and otherwise managing risks across the entire Group in order to facilitate assertive governance with elements of bold risk-taking.
Scroll left or right to view.
Activity | Description |
---|---|
BCP Promotion Council |
|
|
|
|
|
|
|
|
|
|
We have performed risk assessments to appropriately control our business risks. More specifically, we created a risk map and evaluated risks by identifying known risks in each department, categorizing them, and calculating their likelihood and impact. The results of those assessments were analyzed by the Risk Management Committee and reported to the Board of Directors.
We verified the medium- to long-term financial sense and future outlook of primary cross-held stocks in consideration of their returns and risks. In addition, the Investment Subcommittee examined investments and other corporate activities for the future in order to support appropriate risk-taking.
Establish, instill, and maintain the THK Group information security structure
The standing Information Security Committee, chaired by the CEO, convenes four times per year. Although the outside directors and legal counsel participated remotely due to the coronavirus, this committee made decisions concerning policies related to the establishment of information security systems, and it deliberated on responses to information security concerns.
When the GDPR (General Data Protection Regulation) entered into force in May 2018, we set up a fixed structure that included the establishment of a privacy policy and internal regulations that comply with the GDPR. As other legislation protecting personal information continues to be enacted in various countries and regions, we will properly manage personal information by confirming which laws apply to our Group and amend our privacy policy to establish a structure that safeguards personal information around the world.
Before the state of emergency was declared in Japan, we anticipated the need for remote work and took steps to make that transition. To that end, we established an even more advanced security environment including an e-mail license upgrade, anti-spam measures, account verification and cloud access management, and a virus detection framework. We also regularly monitor the Management Console logs for unusual activity.
Measures to enable remote work included:
In addition, we modified the network on the Technology Center floor for the value chain teams to use as a headquarters office space kept separate from other departments.
As a component manufacturer, we are responsible for supplying
parts to customers, no matter the situation. We have
formulated a BCP (business continuity plan) to minimize damage
and ensure a rapid business recovery in the event of a
disaster, such as a large-scale earthquake (an earthquake
registering at least 6 Lower on the seismic intensity scale, or
one that brings about significant destruction).
This past year was one of coping with how the coronavirus
upended both the business environment and everyone’s way
of life. On the other hand, this experience has made evident
the depth of harm that natural disasters bring and the threat
they pose to business continuity.
In order to fulfill our responsibility to supply products even
during a disaster, we introduced a system to quickly identify
components that are impacted by the supplier’s location.
We also participated in a gathering held by the Disaster
Risk Reduction Industry Conference of Japan in order to begin
promoting BCP activities that involve working with the National
Research Institute for Earth Science and Disaster Resilience
and other participating organizations. We will continue
to improve our business continuity management in order to
fulfill our social responsibility.
As a company that supports industry around the world, it is our essential social responsibility to minimize any negative impact on society by fulfilling our responsibility to supply parts even in the event of unforeseen disasters.
Activity | Description |
---|---|
Supplying products | |
Servers | |
Earthquake-proofing | |
Emergency supplies | |
Safety drills |
|
Including Group companies, THK currently possesses 12 manufacturing facilities in Japan and 25 overseas. In the event of a disaster at one factory, we have designated back-up facilities to produce the impacted product lines. Depending on the circumstances of the disaster and with the exception of a few specialized products, we have established a framework to immediately initiate production at the back-up facilities.
We are enhancing our ability to provide products by expanding our current factories and constructing new ones based on market demand for our products and our global strategy. As a result, we have strengthened our ability to respond to disasters.
All of our data is stored and managed at two data centers in Japan to function as backups so that our sales and production activities can continue even after an earthquake or other natural disaster.
We have a schedule for rehearsing the process of switching over to backups in the event of a problem with our main equipment due to an earthquake or other natural disaster. We use a combination of practicing with the actual equipment and tabletop exercises with the staff in charge.
At our production facilities, we install equipment to prevent the toppling of storage shelves.
We also install seismic isolation systems for important machines, production tool racks, and more.
We earthquake-proof items by installing equipment to prevent them from toppling.
All business locations are equipped with emergency supplies.
All production facilities perform emergency drills.
Sales offices perform emergency drills according to their tenant requirements.
To prepare for flooding that could occur due to the recent extreme weather conditions, the THK Wuxi plant prepared sand bags and purchased emergency supplies (including water, food, and rain gear) for people who might be stranded at work. The facility also ran a drill to practice setting up sand bags to keep water from getting inside the plant.