The JVCKENWOOD Group regards risks as factors that could inhibit the achievement of business plans. The Group regularly identifies risks faced by all its business sites around the world to recognize them clearly, set issues to tackle to prevent the realization of the identified risks and minimize their impact or damage, and resolve those issues systematically.
We consider that the most effective corporate response to risks is to identify them correctly in the course of our day-today corporate activities, understand the problems in reducing risks, and have all our business sites around the world collaborate with management to resolve those problems. With these efforts, we will continue to contribute to promoting sustainability activities with the aim of ensuring sustainable growth and enhancing our corporate value.
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. This process covers a wide range of risks, including those associated with currency fluctuations, international taxation, geopolitical events, emerging markets, large-scale disasters, procurement, and intellectual property litigation, as well as risks associated with human rights and information security that have been increasingly recognized in recent years. 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 progress and results of such activities are analyzed and evaluated at the Enterprise Risk Management Conference, which is organized by the Chief Executive Officer and attended by division heads at our Head Office, the Risk Management Officer and company executives in charge of their respective business divisions. For risks that need to be addressed on a company-wide scale and from a companywide perspective, company executives in charge selected from among the members of the Enterprise Risk Management Conference systematically provide support to solve problems based on what was discussed at the meeting.
In FY2019, the Enterprise Risk Management Conference covered measures related to the strengthening of Business Continuity Management (BCM) in the event of a natural disaster and information security and promoting countermeasures at an ongoing basis.
Image of risk management structure
Facing various risks, in particular emergency situations including earthquakes and other natural disasters, spread of epidemics, and the global expansion of terrorism, the JVCKENWOOD Group recognizes that its first social responsibility to stakeholders is to put the utmost priority on preserving human life, and its second is to deliver products and services. To promote business continuity management, based on the basic principle of the Business Continuity Plan (BCP), the JVCKENWOOD Group has been conducting BCP activities at all its business divisions.
Contribute to the security and safety of society through sustained business operations by promptly restoring business activities after an emergency occurs.
In March 2017, JVCKENWOOD received certification from the Association for Resilience Japan based on the guideline issued by the National Resilience Promotion Office, Cabinet Secretariat, as a business operator contributing to the building of national resilience against disasters (Resilience Certification) in recognition of its endorsement of the objective of promoting the building of national resilience and active engagement in efforts related to business continuity. As a result of ongoing activities of disaster prevention and mitigation and business continuity plans (BCPs) for two years, we passed the renewal examination after the review of the documents on its improvements and interview with our executive on March 29, 2019. JVCKENWOOD will continue to work to further enhance the quality of BCM in the future.
Certification as Organization Contributing to National Resilience (Resilience Certification)
Registration Certificate (obtained on March 31, 2017, updated on March 29, 2019)
The JVCKENWOOD Group recognizes climate change as a risk to its business operations and implements company-wide climate change initiatives aimed at mitigating this risk under the leadership of the Sustainability Management Office at its Head Office and general affairs departments of JVCKENWOOD and its affiliates.
See the page linked below for specific initiatives.
Addressing Climate Change