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.

BCP Preparatory Subcommittee

In order to prepare for earthquakes and other natural disasters—one of the high-risk events for the IDEC Group, a Preparatory Subcommittee for promotion of a business continuity plan (BCP) has been set up. It is currently studying and drafting basic policies for disaster response, initial response flows, and a BCP.
We consider it a high-risk event if a huge earthquake strikes and damages the areas where our head office and main factories are located.Assumptions have been made concerning how each person in charge of an emergency task force shall act as an initial response to the disaster, and the necessary manuals and checklists have been prepared, and the necessary disaster prevention measures are periodically reviewed in normal times. We also disseminate information via our corporate intranet to raise employees’ awareness for disaster prevention.

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 continued business expansion and the corporate value enhancement of the IDEC Group.
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. Climate change risks, which were evaluated as important by the Environment Management Committee, are also integrated as “risk events” and evaluated in the map.
Events that are evaluated as having a high probability of occurrence or impact are identified as “high-risk events” and are deployed to the competent department to prioritize risk reduction initiatives and their situations are regularly monitored.