The JVCKENWOOD Group recognizes risk management as an important management issue. We regard risks as " factors that could inhibit the achievement of business plans" and have implemented measures to clearly recognize risks at all workplaces throughout the world. 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.
For risks that could have a company-wide impact, we are taking a management-led approach.
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.
The JVCKENWOOD Group has developed a risk management system under the responsibility of the Chief Executive Officer in order to respond to a variety of risks * that are becoming more diverse and complex in the business environment surrounding the Group.
The Corporate Risk Management Committee, chaired by the director in charge of risk management, meets regularly to monitor risks that need to be addressed from a company-wide perspective and on a company-wide scale. In addition, JVCKENWOOD implements the risk surveillance process shown in the diagram below at all its business sites around the world every year.
In the risk surveillance process, risks are identified at each workplace, and a series of processes are established, including quantitative assessment of the importance of identified risks, formulation of countermeasures, and monitoring progress. For significant risks that cannot be dealt with by individual divisions, the "Corporate Risk Management Committee" systematically provides support to solve problems.
*In addition to foreign exchange fluctuations, international taxation, geopolitical risks, emerging country risks, large-scale disasters, procurement, intellectual property lawsuits, etc., a wide range of risks are also covered such as human rights issues and information security, which have been increasingly recognized as risks in recent years.
In FY2020, 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. In FY2020, for example, a new type of coronavirus infection continued to spread throughout the world. Based on existing infection control manuals and other materials, we implemented various measures to prevent the spread and succeeded in continuing our business with minimal impact.
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 31, 2021)
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