Compliance and Risk Management

Risk Management

Basic Approach

The NGK Group Code of Conduct states that "We will manage business risks and make efforts to prevent the occurrence of problems and promptly respond when they arise." Accordingly, the NGK Group makes an all-out effort to control risks.
To minimize risks, which are becoming more global and diversified as our business expands, we periodically review risks, and the CSR Committee periodically follows up on measures to deal with risks.

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 their comprehensive study and analysis.
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

Category Risk
1.Compliance Awareness on compliance and following rules
Managing material purchasing and expenses
Entertainment, gift-giving
Protecting intellectual property
Human rights, harassment
Trouble with local communities
Response to antisocial forces
2. Information risk Information systems, information security
Category Risk
3. Employment/labor risk Managing human resources and labor
Managing labor, safety and hygiene, and health
Traffic accidents
Long working hours, health management
Support for unskilled labor
4. Facilities management, incident/accident/disaster risk Facilities management
Incidents and accidents
5. Environmental risk Management
6. Product safety risk 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 and works to ensure proper protection and use of IP rights. In addition, based on the policy of respect for the rights of others and ourselves, it aims for a strategic patent network to be built within the close cooperation between the Intellectual Property Department and other divisions such as 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 patent monitoring of other companies for product family and development theme to update our database.