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Risk management

So that we may maintain and strengthen our fundamentals (corporate foundation), promptly respond to changes in the business environment and continuously improve our corporate value, we work to enhance a risk assessment promotion system that enables us to assess the major risks to the entire JTEKT group, evaluates these risks, and promote suitable countermeasures.

Promotion structure

The Council for Enhancement of Corporate Value is a company-wide cross-department organization that regularly reviews risks with the potential of affecting business activities as well as society and the environment. Such reviews incorporate many factors, including the external environment. Each working group and risk control department adheres to the content decided upon and agreed by this Council and establishes response plans to prevent and reduce the manifestation of risk as well as promote various measures. In FY2016, JTEKT began rebuilding its framework to assess and respond to phenomena with a potential to impact JTEKT and its group companies in a timely fashion. We will combine this activity with our corporate governance and compliance related activities to increase both the effectiveness and efficiency of activities and aim to achieve global control of risk that focuses on prevention.

Of the various risks JTEKT addresses, in FY2015 the company established a Large-scale Disaster Countermeasure Promotion Committee chaired by the President aimed at addressing large-scale disasters which have particularly significant impact on business continuation. With the JTEKT Group BCP (*) also established in 2015 as its basic policy, the Committee promotes both the theoretical and practical aspects involved in preparing for such large-scale disasters, including employee safety confirmation and evacuation drills, minimization of damage in households assuming local disaster risks and the early recovery of product supply.

* BCP BCP is an abbreviation of Business Continuity Plan.

Strengthening initiatives in each division from a risk perspective

So that each division can cope with risk autonomously, since FY2013, risks with the potential to interfere with progress of the annual action plan are identified upon formulation of the plan. Moreover, by factoring risk response into the plan, JTEKT is promoting the prevention and countermeasure of risk manifestation at each of its divisions.