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Risk Management
Basic Stance/Policy
We maintain a forward-looking risk management structure that actively involves management in order to support appropriate risk-taking by executive staff.
Policy
We facilitate assertive governance with elements of bold risk-taking.
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.
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| Activity | Description |
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| BCP Promotion Council |
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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.
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| Activity | Purpose | Description |
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| Training and drills | Conveying and instilling internal rules related to information security and promoting understanding of countermeasures to information security threats |
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| Measuring information security effectiveness | Identifying and solving issues with the information security system |
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| Sending information security alerts | Improving knowledge and awareness of information security |
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BCP
Basic Stance/Policy
This year, we promoted BCM* as a method to strengthen the effectiveness of our established BCP, investigating the status of various preparatory measures and the ability of each plant to respond to a disaster through means such as desktop simulations conducted mainly by BCP Promotion Council members at our production facilities.
As a separate initiative, the 3rd BCP Promotion Council convened in December with the theme of maintaining operations during a disaster. Around fifty people in charge of BCP in their respective production and sales departments were in attendance. Prior to the meeting, these BCP promoters were asked to think about the effectiveness of the measures in place at their location while considering the opinions of experts and a survey that asked about hypothetical scenarios at the location of an earthquake. At the meeting, members of the Yamagata and THK INTECHS Sendai plants who experienced the Great East Japan Earthquake shared photos and stories about the aftermath and their response. In doing so, participants gained a stronger understanding of and ability to accomplish what they need to do at their workplaces.
Looking at the recent frequency of earthquakes, there are significantly heightened concerns of a major earthquake occurring. In order to fulfill our mission of supplying products to customers even during an emergency, we will continue to improve our BCP measures and the ability of employees to respond to disasters at their location.
Next year and beyond, we will clearly identify the departments that will respond to the challenges identified during the simulations, determine priorities, establish a collaborative structure within and outside the Group, and formulate conduct guidelines in order to strengthen the capabilities of each plant. Furthermore, in order to promptly understand the impact of an emergency on our materials, components, and other elements of our supply chain, we will develop an information-gathering system that uses RPA and visualizes supplier locations. Through these efforts, we will strive to minimize the amount of harm.
Policy
As a pillar of global industry, it is THK’s critical social responsibility to supply products and minimize the impact on society even when an unforeseen disaster has occurred.
Activities and Results (Including Goals)
| Activity | Description |
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| Supplying products | |
| Servers | |
| Earthquake-proofing | |
| Emergency supplies | |
| Safety drills |
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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.
BCP Response
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.
