Compliance and Risk Management

Risk Management

Basic Approach

The NGK Group Guidelines for Corporate Behavior were announced within and outside the company as our basic stance toward the realization of the NGK Group corporate philosophy of creating new value by providing products and technologies that contribute to a better social environment. This includes initiatives that strictly observe the protection of third-party rights and corporate assets and trust through the practice of risk management.

Risk Analysis and Response

There are six types of risk which are viewed as common to all companies within the NGK Group, including compliance, information, and employment/labor. We make an effort to avoid and prevent these risks through deliberation of budgets and plans and overall examination and analysis in the course of execution and settlement processes at Strategy Committee and Executive Committee meetings.
Business continuity planning (BCP) was formulated to ensure the continuation of critical business functions in the event of large-scale natural disasters including wind and flood damage and earthquakes, massive transportation accidents or other emergency situations, which will be addressed by the Central Disaster Prevention and Control Headquarters and BCP Countermeasures Headquarters.

Company-Wide Shared Risks

1.Compliance Legal/regulatory infractions, improper accounting
Misappropriation by individuals
Violation of intellectual property rights
Human rights violations, harassment
Trouble with local communities
Response to antisocial forces
2.Information Information systems breakdown
Leak of proprietary or personal information
Inappropriate use of social media
3.Employment/Labor Labor troubles
Labor accidents
Traffic accidents
Long working hours, health management
Support for unskilled labor
Labor issues at suppliers and subcontractors
4.Incidents/Accidents/Disasters Incidents and accidents
Natural disasters
5.Environment Environmental management trouble
EMS insufficiency
6.Product safety Defective products

Risk Management System

NGK operates a risk management promotion structure led mainly by the CSR Committee. A person of responsibility and response structure is established for each risk category in an effort to improve risk response capabilities and risk prevention activities.

Risk Management System

President CSR Committee Chair:Director and Senlor Vice President Members:Vice-President. Division heads. etc. Quality Committee Chair:Director and Vice President BCP Countermeasures Headquarters Group Executive:President Compliance Subcommittee Helpline Chair:Group Compliance Dept. Manager Security Subcommittee Chair:General Manager of General Affairs Division Central Disaster Provention and Control Headquarters Group Executive: Director and President All Divisions Group Compaines

Business Continuity Planning (BCP) Initiatives

The NGK Group is developing company-wide business continuity planning (BCP) through the establishment of the BCP Headquarters, an organization for leading business continuity and quick recovery in the event of a large-scale natural disaster, led by the President. Countermeasure initiatives include the establishment of multiple manufacturing bases and procurement sources, damage mitigation measures related to buildings and equipment, and employee safety assurance.
We conduct emergency drills assuming a natural disaster as a field exercise of the BCP. In the drill, participants are instructed to take real actions faithfully according to the plan, through which we identify in detail issues related to each process and procedure and use the findings to improve the BCP.

Intellectual Property Management

The NGK Group encourages the creation of intellectual property (IP) rights by working to ensure proper acquisition, protection, and use of IP rights based on the policy of respect for the rights of others and ourselves alike. Accordingly, the Intellectual Property Department is building a strategic patent database in close cooperation with business, research and development, and technology divisions.
Specifically, it features a patent mapping function to present the internal and external patent landscape of specific technology areas using charts and graphs, which can be easily shared within the Group.
To prevent patent infringement risks, we regularly conduct external patent monitoring by product line and development theme to update our database.