Risk Management Basic Approach and System

We carriy out appropriate initiatives towards minimizing risks that could have major impacts on our business activities. In addition, to prepare for unexpected events such as natural disasters, we are also working on business continuity plans to either continue operating or recover as quickly as possible after a disaster.

We are constructing a system where, if there is an unexpected event that could have a major impact on NSK’s operations, it is promptly reported to the management team and the people responsible liaise with the related departments to deal with the issue appropriately. In addition, we have established separate management systems, committees, and councils for major risks, and are working on understanding risks and appropriate responses.

Major Business Risks

1. Risks associated with a high proportion of exports
2. Legal regulations
3. Quality issues
4. Risks associated with restructuring the sales network
5. Risks associated with dependence on specific industries and increased competition
6. Risks associated with parts suppliers outside our Group
7. Risks of litigation
8. Risks of major natural disasters, infectious diseases, etc.

Initiatives

BCP Initiatives

We have a business continuity plan (BCP) in place to use in case of an emergency such as a major natural disaster. This plan sets out the systems, rules, responding organizations, recovery priority steps, and so on needed to minimize the effects on our employees, customers, local people and all other stakeholders and to recover business promptly.

Preparations for Major Disasters

We carry out regular drills in order to implement the BCP in the event of a disaster, verifying its effectiveness and making improvements to the plan in a PDCA cycle. In addition, we are working to ensure the effectiveness of our disaster measures by, for example, providing hazard maps, maintaining an emergency contact network, and maintaining a safety confirmation system to collect information on the safety of employees and their families in the event of a disaster. We are currently operating domestic production sites in two locations, and are working to reduce risks to our business continuity.

Infectious Disease Measures

We are working to prevent employees from being infected by ensuring compliance with the “new normal” directed by the government as a way to deal with the COVID-19 pandemic. In addition, we consider stable supply of products and continued service for our customers to be two of the most important issues, so the entire company, especially the Manufacturing Division and the Sales Division, will respond to ensure customer needs are met.

Cybersecurity

We work to ensure information security throughout our entire company by establishing a Basic Cybersecurity Policy that protects information received from customers and our own information assets from threats such as accidents, disasters, or crime, allowing us to enjoy the trust of our customers and society. Specifically, we are maintaining and improving information security levels based on rules that regulate personal measures, information asset management, physical measures, access control and authentication, use of IT equipment and software, system development and maintenance, IT infrastructure operation and management, information security incident response and business continuity management. In addition, we have established the Personal Information Protection Regulations to appropriately protect and appropriately handle the personal information of our customers and other stakeholders, and strive to adhere to them.