Sustainability
Risk Management
Approach to Risk Management
The NGK Group addresses the issue of serious risk by empowering the following committees to facilitate risk avoidance and prevention, in accordance with the Basic Rules of Crisis Management. Additionally, in the event of some particularly significant risk, the executive officer in charge of the Corporate Planning Office can call a meeting, which would include the president, to develop countermeasures.
In times of increasing socio-economic uncertainty, it is important to have a heightened awareness of risk and to act before risks turn into crises. Therefore, in addition to the six committees, which we maintain in order to oversee matters of day-to-day risk, we also have in place a system by which top management can coordinate a rapid response to growing risks.
Risk Management Framework Chart

Risk Identification Process
All risks discovered through the standard risk management process, which have the potential to affect the operational or financial situation of the Group are collected and reevaluated in order to identify any which may be serious risks. The ESG Committee will then deliberate and designate those risks that need to be managed by the Group as a whole.

Risks, Risk Summaries, Risk Responses
Risk | Summary | Response |
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1. Business operation risks | All operations | |
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1. Ceramic Products Business | ||
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②Process Technology Business | ||
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③Electronics Business | ||
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④Energy Infrastructure Business | ||
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2. R&D-related risks |
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3. Legal compliance, human rights and safety, and quality-related risks | 1. Legal compliance-related risks | |
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②Human rights and safety-related risks | ||
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③Quality-related risks | ||
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4. Information systems-related risks |
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5. Currency exchange, capital, and procurement-related risks |
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6. Climate change and disaster-related risks |
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Legal Risk Management at Group Companies Outside Japan
The NGK Group is engaged in strengthening its ascertainment of legal risk management status in overseas business to minimize the globalizing and diversifying risks associated with business expansion.
We ask all Group companies outside Japan to report information pertaining to the status of lawsuits, legal affairs and consultation with lawyers twice a year, and helpline usage, export controls and access to legal-related information once a year. Major issues found in such reports are reported to the Compliance Subcommittee and CSR Committee to share information.
Consultations from bases outside Japan are handled by lawyers and legal departments to avoid risks.
Identifying and Preventing Risks Based on Questionnaire
As part of efforts to enhance risk management practices, in fiscal 2019 NGK and its Group companies in Japan conducted the second CRS (Corporate Risk Survey). Combining the previously administered CSA (Control Self-Assessment) questionnaire and the compliance awareness survey, the CRS checks the understanding of respondents regarding the possibility of risk and its implications with the goal of grasping and preventing various potential risks arising from daily business operations. Based on the results of the survey, the relevant divisions and departments create measures to reduce risks.