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Risk Management
Basic idea
The matters with the potential to cause damage to management are classified into “Risk” (situations in which risks have not been realized) and “Crisis” (emergency situations in which risks have already been realized). In the former case, DENSO pours its efforts into the prevention by picking up the shoots of risk. In the latter case, the Company strives for a prompt and proper initial response and resumption. Among others, the key items are: “1) strengthening responsiveness during crises; 2) diffusing and raising awareness of risk management; and 3) strengthening the group risk management.”
Promotion structure
The “Risk Management Meeting” is a cross-company organization in which the 58 risk items with the potential to impact life, credit, property, or business activities have been selected. These items have been individually allocated to responsible departments. The departments have been continuously reviewing and raising the level of measures for prevention and resumption. Likewise, Risk Managers have been appointed at group companies whereby DENSO seeks to furnish a promotion structure and share relevant information with group companies. Additionally, the Company conducts a self-check for each risk item following “Self Diagnosis Sheet,” thereby raising the level of risk management.
Diffusion and awareness-raising
The “Crisis Communication Manual” has been distributed to all directors, managers, and responsible persons by risk item. In addition, all associates are obligated to carry the “Risk Management Handbook” that urges precise response when fires, traffic accidents, or earthquakes occur. Furthermore, as a measure to strengthen risk management, seminars are implemented for managers. The scope of the seminars was expanded to include responsible persons for risk management at group companies and, in fiscal 2006, 75 percent of persons in the list attended the seminars.
Business continuity plan (BCP)
Amid a recent multitude of large-scale disasters that have occurred both inside and outside Japan, to be strong enough to withstand calamity is required. DENSO continues formulating business continuity plan. The plan aims to ensure the safety of suffered associates, or their families, and achieve the responsibility of product supply following a prompt response. Assuming the Tokai and the Tonankai Earthquakes, the Company has formulated the operational follow-through to resume business operations within a set target period and the corresponding operational manual. As such, DENSO promotes building a model for the formulation of continuity plan at product divisions. In addition, concerning the safety confirmation, which is the basis of business continuity, in 2005 the Company has introduced “Safety Confirmation System.” In Japan, the Company has implemented a group drill of inputting into the system. (about 40,000 associates participated every time)
Organization for countermeasure against crises
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