Risk Management
Basic Stance/Policy
We maintain a forward-looking risk management structure that actively involves management in order to support risk-taking by executive staff.
Policy
We facilitate assertive governance with elements of bold risk-taking.
Risk Management System
Risk Management Committee
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.
Activities and Results (Including Goals)
Risk Management Activities
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.
2022 Activities
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Reviewing risk assessments
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 at THK and in our domestic and international Group companies, 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.
Other
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.
Information Security
Policy
Establish, instill, and maintain the THK Group information security structure.
Information Security Management
The standing Information Security Committee, chaired by the CEO, convened four times this year. This committee, which is attended by outside directors and legal counsel, makes decisions concerning policies related to the establishment of an information security structure and discusses responses to information security concerns.
As training for employees, we: (1) distributed explanatory materials on the management and preservation of confidential information to the information administrator of each relevant department with the goal of ensuring awareness of the rules, (2) provided e-learning materials on the rules for handling confidential information and measures to prevent leaks, and (3) conducted targeted e-mail attack drills. In addition to these, we also conduct information security surveys with our employees in order to identify problem points and improvements.
Complying with laws protecting personal information
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.
2021 Activities
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BCP (Business Continuity Plan)
Policy
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.
Process Flow for Emergency Situations
2022 Activities
The theme of 2022 was to strengthen the effectiveness of the BCP. Learning from real examples of other companies' BCP measures not functioning during an emergency, we have conducted training in order to improve on-site response capabilities and strengthen the effectiveness of our BCP. Specific examples of such activities include:
- Performing drills for potential disaster scenarios in order to improve understanding and awareness among BCP promoters and other responsible parties of their current ability to make judgments and take action
- Investigating and verifying tools and services that enable an effective response to an emergency
2023 Activity Plan
The theme of 2023 is to establish a smart BCP. Specific activities include:
- Gradually expanding activities for improving the ability to make judgments and take action during an emergency down to an individual level
- Investigating and introducing a smart BCP that will strengthen local resilience
- Investigating a BCP that also considers collaborating with (supporting) the surrounding community as a way to con-tribute to the local region
Activities and Results (Including Goals)
BCP Strategies for a Large-Scale Earthquake
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Back-up Facilities
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.
Boosting Production Capabilities of International Group Factories
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 disaster situations. We are also expanding our production volumes and shortening lead times by improving the efficiency of our manufacturing processes through automation at all of our production facilities both in and outside of Japan.
BCP measure: Maintaining main and backup servers in separate data centers
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.
BCP measure: Practicing switching to backup servers in case main servers were to go down (once per year)
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.
Earthquake-proofing: Installing equipment to prevent toppling of shelves that hold components, fixtures, and tools (Production facilities)
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.
Earthquake-proofing: Installing equipment to prevent toppling (Sales offices)
We earthquake-proof items by installing equipment to prevent them from toppling.
All production and sales facilities: potable water, food, sanitary items, emergency supplies, and rescue equipment
All business locations are equipped with emergency supplies.
Safety drill: Annual drills at all locations
All production facilities perform emergency drills.
Sales offices perform emergency drills according to their tenant requirements.
Efforts at Each Facility
Kofu Plant: Improving the Fire Shutters
The technical building's fire shutters, which remove harmful smoke in the event of an industrial fire, were improved in November to secure a safe evacuation route for employees.
THK NIIGATA Plant: Conducting Fire Extinguisher and Evacuation Drills
Three training sessions were conducted through September and October to train the in-house firefighting team and night shift members on how to handle the initial response in case of a fire. Each person received hands-on training on how to use a fire extinguisher after observing a fire fighter's demonstration.
An evacuation drill was also conducted in October for employees, temporary workers, on-site business partners, and visitors to check their preparedness for an actual fire. Special drills were also conducted regarding firefighting team discipline, fire hydrant use, chemical spills, disaster reporting, initial response to fires, and supporting people with disabilities. (See the pictures below.)
THK Wuxi Plant: Strengthening THK's BCP Structure
To prevent an interruption of production due to an increasing rate of COVID-19 infections, employees resided on-site, and everything they needed to be able to continue production was prepared for them.
Items prepared: 1. Sleeping mats for 300 people 2. 11 shower stalls (installed in the washroom) 3. 7 washing machines 4. Medical supplies (OTC medicines, rubbing alcohol, masks, and antigen testing kits) 5. Other emergency supplies (food and water)
THK Wuxi Plant: Strengthening Factory Security at the Entrance
The following security measures were strengthened at the plant entrance in November to prevent theft and the leaking of information from within the plant.
