Key Philosophy and Activities
The JVCKENWOOD Group regards risks as “factors that are mutually linked, affecting one another to inhibit the achievement of business plans.” The Group regularly identifies risks faced by all its business sites around the world in order to recognize them clearly. Also, the Group’s business sites around the world identify issues to tackle in order to prevent the realization of the identified risks and minimize their impact or damage. They conduct activities to resolve these issues systematically by exercising ingenuity. In the meantime, some of the identified risks could affect the entire Company and thus require problem-solving activities from a company-wide perspective. Management takes the initiative in implementing measures to resolve such problems. We consider that the most effective corporate response to risks is to identify them correctly in the course of our day-to-day corporate activities, understand the problems in reducing risks, and have all our business sites around the world collaborate with management to resolve those problems.
Risk Management System
JVCKENWOOD implements the risk surveillance process shown in the diagram below at all its business sites around the world every year. The purpose is to ensure the risk management activities are conducted through collaboration between its business sites and management. In the risk surveillance process implemented throughout the year, we quantitatively assess the significance of risks identified by the business sites, examine problems in reducing risks of high significance, and work on resolving those problems and confirm the effect. The Enterprise Risk Management Conference, which is comprised of members chosen from company executives and chaired by the Chief Administration Officer (CAO), keeps track of the progress and results of such activities. If risks that need to be addressed on a company-wide scale and from a company-wide perspective are identified, company executives in charge selected from among the members of the Enterprise Risk Management Conference prepare resources and a mechanism for solving problems and provide support for activities at business sites systematically. The progress and results of such activities are shared at the Enterprise Risk Management Conference, and the CAO evaluates the performance and gives appropriate directions. The Enterprise Risk Management Conference also develops risk management regulations to enable the framework of risk management activities to function effectively and holds various deliberations for risk management.
Business Continuity Management (BCM)
Facing various risks, in particular emergency situations including natural disasters, epidemics, and terrorism represented by Islamic State expanding globally, the JVCKENWOOD Group recognizes that its first social responsibility to stakeholders including customers is to put the utmost priority on preserving human life, and its second is to deliver products and services. To fulfill these responsibilities, the Group has defined the basic principle of the Business Continuity Plan (BCP) as “contributing to social security and safety through continuing business by swiftly reinitiating business operations after the occurrence of an emergency situation.” Based on this policy, and beginning with the development of systems for confirming the safety of employees and their families, disaster prevention, and emergency stockpiles, the JVCKENWOOD Group has been conducting BCP activities at all its business divisions relevant to its value chain, from production bases, design and development bases, the Corporate Division of the Head Office, and sales bases to affiliates. It has done so by leveraging its accumulated BCP expertise to build in stages a mechanism of alternative production in preparation for events in which it would be difficult to restore its production bases in a short period of time. The Group also carries out various types of simulation training to gain experience in initial responses, while improving rules and manuals based on the results and findings of such training, aiming to enhance the quality of BCM.