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Risk management

Basic concept
Enhancing corporate value and meeting the expectations of society

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. In October 2017, JTEKT established a new system to strengthen its initiatives for risk prevention which involved a shift from CO (Compliance Officer) to RO (Risk Management Officer). In addition to rolling out risk management to individual departments and group companies, we also aim to merge risk management activities with activities relating to corporate governance and compliance to increase effectiveness and efficiency and control risk on a global level.

Promotion structure

Clarification of risk appraisals and response

At JTEKT, we allocate risk management departments depending on the specific item of risk. Risk management departments promote formulation of response plans and polices to prevent and reduce the manifestation of risks through the risk management working group, which is an organization directly under the supervision of the Council for Enhancement of Corporate Value.

Enforcement of immediate reporting

From FY2015, we broadened the scope of our immediate reporting system which requires prompt reporting after appraisal of a compliance issue and are enforcing a rule to ensure the initial report after a risk is appraised is made swiftly.

Enforcement of immediate reporting

Strengthening of each division's risk perspective

For each division to autonomously handle risks, the annual execution plan formulated on a division level incorporates response to potential risks that may inhibit the fulfillment of the said plan and this promotes prevention of risk manifestation and remedial measures by each division independently.

Activities for FY2018

Sharing risk awareness

JTEKT comprehensively and systematically addresses risk by leveraging outside knowledge. The risk control department postulated specific events and assessed the level of impact and preparedness for each of these then shared the results at the Council for Enhancement of Corporate Value meeting held in March 2019.

Education/Awareness-raising Activities

We promote the company wide common awareness of risk management, holding briefings for all the department managers in May and June 2018 and study groups for officers in February 2019 on the theme of risk management.

Information Security

We recognize the threat of cyber attacks and virus infections rapidly increasing in the world as a major risk as our corporate activity. It is indispensable to strengthen information security countermeasures in order to supply safe products also in each process such as development, production, shipment and so on. Under these circumstances, we established "JTEKT Group Policy of Information Security" in March 2019 and are working to strengthen it.

Countermeasures for a Large-scale Disaster

Amongst the various risk responses JTEKT promotes, in regards to large-scale disasters with particularly heavy impact on continuity of business activities, JTEKT established a Large-scale Disaster Countermeasure Promotion Committee presided by the president in FY2015. In accordance with the Basic Policy for JTEKT Group BCP* formulated in the same year, JTEKT is promoting countermeasures for both tangible and intangible aspects, such as confirming safety of employees, emergency training, measures to mitigate disaster-related damage in households assuming various regional disaster risks and preparation for the early restoration of product supply.

* BCP is an abbreviation of Business Continuity Plan