JVC 2012 Annual Report Download - page 31

Enterprise Risk Management Activities
Key Philosophy
Currently, the JVCKENWOOD Group is working to move toward the concept of enterprise risk management. Regarding risks as
inhibitors to the fulfillment of a company's business plans, this concept accordingly involves the identification, assessment, and
management of risks at the enterprise level to support the achievement of company targets.
To accomplish its business plans, the Group will be putting in place a corporate strategy that correctly identifies and
responds to risk in the course of its day-to-day corporate activities. Although risk management and corporate strategy would
appear to be different, this move indicates that they are the same in terms of their objectives.
Risk Management Organization
In order to implement risk management, initiatives under the leadership of the
chief executive officer (CEO), a chief risk officer (CRO) has been appointed to
build, maintain, and administer an efficient risk management system as well as
to explore ways to improve the organizational structures for monitoring and
reporting. Comprising chosen members from Company executives and chaired
by the CRO, the Company-wide Enterprise Risk Management BCP (Business
Continuity Plan) Conference will not only deliberate on key issues relevant to
the Group's risk management, but also put into practice risk management
initiatives by establishing a committee of working groups by function, made
up of representatives from each function of the JVCKENWOOD Group.
Business Continuity Plan (BCP)
An increasing proportion of the JVCKENWOOD Groupʼs operations are B to B (Business to Business), in which the Group bears
greater responsibility for deliveries to customers. In line with this trend, the basic BCP policy—defined as "contributing to social
security and safety through continuing business"—has been clearly established in the Company, emphasizing the significance of
business continuity. At the same time, the Enterprise Risk Management Office was established to strengthen the Group's
approaches to business continuity management.
Established on a Company-wide basis, the Business Continuity Management Rules prioritize respect for human life, followed
by the fulfillment of the Groupʼs social responsibility to its stakeholders, including its customers, of delivering products and
services. In keeping with this policy, the Group is streamlining its procedures for confirming the safety of its employees and their
family members, making disaster readiness preparations, and stockpiling emergency supplies.
Driving Company-wide Disaster Prevention
The JVCKENWOOD Group has streamlined its CRO-headed framework for disaster prevention and,
after prolonged consideration, revised its General Disaster and Accident Countermeasures Manual in
the aftermath of the Great East Japan Earthquake.
Furthermore, the Group has distributed a copy of the Major Earthquake Countermeasures
Handbook (Individuals and Homes) to every employee working for Group firms in Japan.
The Group is also conducting a broad range of drills to maintain awareness of and readiness
against disasters, including safety confirmation drills, evacuation drills in anticipation of tsunamis,
emergency attendance and set-up drills for members of the emergency countermeasures
headquarters, and emergency communication drills using satellite telephones and radios.
Corporate Staff,
Head Office
Chief Executive Officer (CEO)
Secretariat
Enterprise Risk Management Office
Company-wide Risk Management BCP Conference
Chairman: Chief Risk Officer (CRO)
Members
・Department heads, Head Office
・Chief operating officer (COO) of each business group
Procurement IT Production Finance
Development & Design Sales
General Affairs
Human Resources CS Logistics Public Relations
Car Electronics Business Group
Professional Systems Business Group
Home & Mobile Electronics Business Group
Entertainment Software Business Group
Affiliates
Working Groups by Function
"Large Earthquake
Countermeasures Handbook
”
29
JVC KENWOOD Corporation
Risk Management Risk Management