The NGK Group works to enhance the level of risk management in an eff ort to minimize the increasingly global and diversifying risks associated with business expansion.
Potential risks from business operations are comprehensively examined and analyzed during the process of budget and plan discussion and enactment finalization by the Strategy Committee, Executive Committee and other bodies, with an eye to avoiding or preventing risks. The Central Disaster Prevention and Control Headquarters and CSR Committee are charged with responding to emergency situations involving wind or water damage, earthquakes, or large-scale catastrophic events related to transportation.
In fiscal 2007, we introduced a control self assessment (CSA) questionnaire and risk management mechanisms based on this instrument at all domestic Group companies, with the aim of countering risks in day-to-day business operations by improving the workplace practices at the root of such risks. The questionnaire is conducted at either NGK or the domestic Group companies every other year, with the latter targeted with the questionnaire in December 2010.
In addition to measures enacted by each division based on an analysis of questionnaire results, divisions specializing in risk propose response measures whenever a companywide response is required, with the action plan for implementation reported to the CSR Committee. The committee then follows up on plan progress every six months, with the status at each point shared with top management and other committee members.
In fiscal 2010, an external consultant (KPMG AZSA LLC) was brought in to perform a check of NGK Group CSR activities in order to assess the level of and any issues present in such activities.
By and large, the evaluation suggested that the Group’s CSR activities are moving steadily apace. It pointed out the need, however, to expand the scope of collection and confirmation of personnel data to encompass Group companies worldwide, as well as the need to proactively publicize meaningful activities already taken. The content of this evaluation was reported to the CSR Committee and other relevant departments, and made available to employees via CSR-Web, and will serve as a reference for future CSR activities.
