Nissan 2011 Annual Report Download - page 34

Maintaining Trust Through Transparency
Ensuring Personal Information Protection and Reinforcing Information Security
Aware of our social responsibility to properly handle customers’ personal information, Nissan has set up
internal systems, rules and procedures for handling personal data in full compliance with Japan’s
Personal Information Protection Act. All companies in Japan associated with Nissan are taking similar
steps. Moreover, Nissan shares with Group companies worldwide its Information Security Policy as its
basis to reinforce overall information security. We have also established an Information Security
Committee, which implements measures as necessary to further strengthen information security to
prevent information leaks and other such incidents. Furthermore, we regularly carry out various inhouse
programs to thoroughly educate and motivate employees to uphold their responsibilities in this regard.
The Principle and Approach to Corporate Risk Management
For Nissan, the term risk refers to any factor that may prevent the Nissan Group from achieving its
business objectives. By detecting risk as early as possible, examining it, planning the necessary
measures to address it and implementing those measures, we work to minimize the materialization of
risk and the impact of damage if it is realized. Risk management must be a real-world activity closely
linked at all times with concrete measures. Based on its Global Risk Management Policy, Nissan carries
out activities on a comprehensive, group wide basis.
In order to respond swiftly to changes in its business environment, Nissan set up the department in
charge of risk management, which carries out annual interviews of corporate officers, carefully
investigates various potential risks, evaluate impact, frequency and control level and revises the
Corporate Risk Map. An executive-level committee makes decisions on corporate risks that should be
handled at the corporate level and designates “risk owners” to manage the risk. Under the leadership of
these owners, appropriate countermeasures are developed and implemented. Additionally, the board
member in charge of internal controls (currently, the COO) regularly reports to the Board of Directors
on progress being made.
With respect to individual business risks, each division is responsible for taking the preventive
measures necessary to minimize the frequency of risk and its impact when realized as their own
business activities. The divisions also prepare emergency measures to put in place when risk factors do
materialize. Nissan Group companies in Japan and overseas are strengthening communication and
sharing basic processes and tools for risk management, as well as related information, throughout the
Group.
Additionally, a “Corporate Risk Management” website was launched on Nissan’s intranet in 2009,
which puts out risk management information to Nissan employees in regions including the United
States and Europe and major subsidiaries in Japan.
Nissan continuously carries out measures including anti-seismic reinforcement of facilities,
improvement of its business continuity plan (BCP) and simulation training. These measures helped us
minimize physical damage of our facilities and smoothly start up the Global Disaster Control
Headquarters following the March 11, 2011 earthquake in Japan. We constantly shared up-to-date
information through the headquarters, conducting consistent actions throughout the company, thus
helping the effective recovery of our value chain from suppliers to dealers. Furthermore, we are
addressing the issue of how to manage the electricity shortages expected this summer and we aim to
achieve both power saving and business continuity.
Risk Management Measures & Actions
1. Risks Related to Financial Market
1) Liquidity
Automotive
Liquidity risk is one of the major risks facing any business and the 2008–9 global credit crisis has
heightened the importance of managing this risk. Nissan recognizes this risk and has put in place
several countermeasures to manage this risk.
Corporate Governance
Performance Corporate DataMid-term Plan
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NISSAN Annual Report 2011