At TDK, the Risk Management Committee works directly under the Executive Committee to promote companywide enterprise risk management (ERM). It specifies 49 risk items involved in the Group’s corporate activities, including risks relating to natural disasters, such as earthquakes and flooding; risks relating to contagious diseases, such as new strains of influenza; risks relating to product quality; and risks relating to the procurement of raw materials, etc.
The Risk Management Committee conducts activities to ensure a proper response to these items. In particular, it promotes cross-sectional and companywide activities aimed at reducing risks that hinder the achievement of business objectives. If a crisis does unexpectedly occur, TDK will adopt countermeasures centered on the Risk Management Committee.
In addition, regarding individual risks that should be dealt with by the function or Business Group concerned (legal, financial, information technology, environmental risks, etc.), TDK stipulates operational rules in companywide standards, detailed rules, and procedures and Business Group procedures. The Corporate Officers in charge of business execution take responsibility for handling risks relating to daily business under their jurisdiction.
Furthermore, Company Auditors and the Management Review & Support Department, which is TDK’s internal auditing body, monitor the implementation of countermeasures in each Business Group and offer advice and assistance for the reduction of risks. Advice about risks that may affect the Group is also received constantly from TDK’s advisory lawyers.
In the fiscal year ended March 2011, TDK promoted the compilation of draft guidelines concerning the sale of products to customers in fields such as medicine and aviation, where risks relating to human life are especially high.
The Great East Japan Earthquake struck on March 11, 2011, causing immense damage throughout the region. While production has now resumed at all TDK Group facilities, we are proceeding with a review of our Business Continuity Plan (BCP). This will include the rebuilding of TDK’s supply chain on a global level, to strengthen responsiveness to various risks that might occur in the future.