Risk Management

Basic stance

In keeping with the global expansion of business, DENSO is striving to strengthen risk management as part of its internal control system to help minimize risk. Specifically, emergence of circumstances with the potential to cause damage to corporate management are classified as risks (situations in which risks have not yet been realized) and crises (emergency situations in which risks have already been realized). For the former, efforts focus on nipping risks in the bud before they have the chance to manifest themselves; for the latter, DENSO strives to make an initial response and response for restoring business operations in a prompt and appropriate manner.

In fiscal 2010, we focused on raising risk management awareness among workplace leaders, who form the backbone of our approach to risk management; responding to new types of infl uenza; and examining the details of measures to combat risk, such as workplace safety and leaks of confidential information, as well as the status of implementation (including reviews of actual sites).

Promotion structure

In May 2003, we established a Risk Management Meeting, which cuts across organizational boundaries; selected 58 risk items with the potential to impact life, credit, business activities or property; and designated a responsible department for each. These departments continuously review and enhance our prevention and business restoration measures.

In fiscal 2010, we positioned risk management as the basis of CSR and worked to integrate and strengthen the promotion structure in order to fulfill the social responsibilities expected of DENSO. Activities for ongoing improvement in the risk management system and structure and permeation of risk management are now the domain of the CSR Promotion Meeting, while the traditional Risk Management Meeting deals with initial response when a crisis or emergency situation arises. We also form specialized contingency organizations depending on the extent of the situation and degree of urgency, which facilitates agile response to minimize damage.

We integrated the traditional roles of the general risk manager into those of the CSR leader at domestic and overseas companies subject to our manage-rial consolidation rules as well as Group companies in which DENSO Corporation is the largest shareholder, and appointed risk managers for each risk item under that umbrella. We are constantly working to upgrade our risk management based on support from key functional departments and regional headquarters.

Risk management structure

Expanding activities to spread and raise awareness

Since the awareness and conduct of the managers who are our workplace leaders are essential in risk management and crisis response, in fiscal 2010 we also conducted training directed toward department managers as well as factory managers, managers of production department sections and managers at domestic Group companies. The training was attended by 88% of the targeted managers. In addition, we continued to provide risk management education for employees scheduled for transfer as president of local corpora-tions in order to strengthen risk management at overseas sites. A total of 25 employees took the course. We also sought to ensure proper responses to fires, traffic accidents and earthquakes by requiring that regular employees carry the Risk Management Handbook (first version formulated in 2004) with them at all times. The content of the handbook has been revised and distributed to all employees to further stimulate awareness at the individual level.

Response to new types of influenza

In line with fears regarding the spread of new types of infl uenza in the past few years, DENSO formulated a basic policy and response manual at relevant departments from the perspective of infection control, and worked to increase awareness among employees.

In 2009, we formulated an action plan that included Group companies in Japan and overseas in response to a new type of infl uenza (A H1N1) that broke out in Mexico in April and spread worldwide, and implemented countermeasures that included prevention and infection control.

Subsequently, as a companywide countermeasure, we formulated an action plan for each phase in case of an outbreak of a highly virulent infl uenza where there are no signs of controlling infection. Domestic and overseas Group companies took similar steps.

We will examine action plans and execute concrete countermeasures while closely monitoring the situation in Japan and other countries and regions.