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    Risk Management

    Basic stance

    The Toyota Boshoku group is working to comprehensively reinforce risk management and reduce risk in order to respond swiftly to major risk that includes management risk, risk in daily operations, risk such as disasters and accidents, risk arising from the external environment such as global warming and water and social reputation risk*.
    * Risk of losing societal trust

    Principal risk management initiatives

    Toyota Boshoku formulated 12 priority initiative themes in the three areas of business continuity, reputation and compliance between fiscal 2017 and fiscal 2019. We have strengthened risk management company-wide by sharing the state of progress of risk response activities at the Risk Management Promotion Meeting, which was established in order to prevent risks and minimise damage.
    Nonetheless, we will work on our risk assessment company-wide from fiscal 2020 since we have been unable to identify all risks in our activities to date and the implementation of risk measures and continuous monitoring have been insufficient.
    Through risk management, we aim to: (1) Identify all risks without exception; (2) Prioritise the different risks; (3) Share the objectives of measures and evaluate progress; and (4) Continuously improve risk management.

    Risk management activities

    Risk management activities

    Key initiatives in risk management up to fiscal 2019

    Business continuity
  • Indispensable processes and facilities
  • Production plant explosions / fires
  • Supplier issues
  • Labour risk overseas (strikes)
  • Reconfirm role of organisations and prepare manuals that complete initial response~restoration / reconstruction
  • Reputation
  • Respond to overwork
  • Prevent supplier data falsification
  • Initial response when misconduct scandal occurs
  • Prevent mental health disorders
  • Others
  • Establish legal risk management structure
  • Global-wide activities by the security export control structure
  • Respond to GDPR
  • Action plan for fiscal 2020

    Toyota Boshoku has prepared a risk inventory chart comprising 10 classifications and 42 items for fiscal 2020. On this chart, we will plot the degree of importance of each risk from the perspectives of impact and ability to respond. We will then determine the degree of risk in five stages based on importance and possibility of occurring, and position the risk on the risk map so we can select company-wide priority risk areas. We will make further improvements to this chart in 2020 and beyond and run it through a plan-do-check-act (PDCA) cycle.

    Risk inventory chart: 10 classifications

    Risk inventory chart: 10 classifications

    Risk evaluation

    Risk evaluation

    Confidentiality and information security management

    The Toyota Boshoku group considers the appropriate management of confidential information to be an important element of our business activities. We created a global confidentiality management system to conduct confidentiality and information security management.
    At Toyota Boshoku, in addition to strengthening activities in conjunction with respective functional divisions, we have assigned personnel responsible for confidentiality management and personnel in charge of confidentiality management within each division. We ascertain the weaknesses in each workplace through on-site discussion. We are looking into measures to mitigate confidentiality risk and are working to make ameliorations and improvements. In regions outside Japan, Regional Management & Collaboration Hubs (RM&CH) undertook self-inspections using confidentiality management standards that match the characteristics of each region and we deployed in sequence measures to resolve weak points at each site within a region across the organisation.
    In fiscal 2019, we conducted training on management risk and security risk for executive officers as well as drills concerning response to computer incidents.

    Supplier recovery support

    Toyota Boshoku supported the production recovery of a supplier affected by the heavy rain that fell in west Japan in July 2018. Around 60 members came together to help clean up inside the plant that was damaged by floodwater and support alternate production at other plants while also lending a hand to local residents. This also provided us with the chance to think about the impact of initial response on recovery speed, including the identification of accurate information in a timely manner and clarification of roles inside and outside the Company. We are pursuing the creation of a sturdier risk management system, for example, by reflecting our own issues identified through disaster recovery efforts in future response measures.

    Providing support around the plant
    Providing support around the plant
    Repairing flooded equipment
    Repairing flooded equipment