Risk Management
We work to comprehensively manage risks and implement measures towards the continuous advancement of the Nikon Group.
Risk Management System
The Nikon Group has its own Risk Management Committee. This committee identifies risks that could impact the Group's management, formulates countermeasures against those risks, implements a range of measures to minimize the damage that could be caused if a risk materializes, performs constant monitoring, and manages the risks by implementing a PDCA cycle. During the year ended March 31, 2012, the committee continued its work from the previous fiscal year on information security, management of risks for employees assigned overseas, and measures against a new strain of influenza.
Construction of a New System for Risk Management
A desktop exercise
In April 2012, the Risk Management Committee was launched under a new system to strengthen its role and functions. Specifically, the Risk Management Committee was made independent from the control of the CSR Committee, and the Integrated Disaster Prevention and BCM Committee was abolished. Efforts for integrated disaster prevention and BCM will now be promoted by departments as part of their routine work. The Executive Vice President serves as the Chairperson of the new Risk Management Committee, and the Administration Department of the Business Administration Center serves as its secretariat.
The previously limited topics dealt with by the Risk Management Committee have also broadened to cover risks in general. New functions have also been added to the committee, including the identification of potential risks and risk assessment (prioritization).
Enhancing the BCM System
At the Nikon Group, BCPs are formulated in preparation for a largescale disaster or emergency.
The Great East Japan Earthquake brought to light many issues for BCPs, such as the possibility of an earthquake larger than ever expected, damage from tsunamis and power supply problems. Once business had been restored following the earthquake, we evaluated risks on the basis of these issues by visiting sites, including those actually damaged in the disaster. Moreover, in preparation for an earthquake in the Tokyo region, we reviewed our damage predictions, and we revised our initial responses and BCPs. In March 2012, one year after the earthquake, we conducted training and exercises for executives at each of our facilities and Group companies in Japan, in an effort to entrench revised BCPs and to enhance our risk management capabilities. Furthermore, in light of the impact of the recent floods in Thailand, we will reappraise our measures dealing with disasters.
Major Risk Management Activities
Information resources risk management
The Information Security Handbook
Based on the Nikon Group Information Management Rules, we are taking measures globally to prevent information leakage. In particular, we strictly control access to personal information. Nikon Imaging Japan Inc. has obtained approval to use the PrivacyMark from Japan Information Processing Development Corporation. We have distributed the Nikon Group Information Security Handbook to employees to ensure that each of them complies with the rules based on a full understanding of the importance of information management. In addition, we conduct various forms of education including the e-learning comprehension test and conduct information management audits twice a year in Japan to constantly increase employees' awareness of the rules. We have also actively worked to make overseas Group companies aware of the basic rules of information management.
Overseas risk management
Orientation for employees traveling overseas on business
As the Nikon Group expands its business on a global scale, the number of employees who are assigned to various regions of the world or make overseas business trips has been increasing year by year.
At Nikon Corporation, for the purpose of responding swiftly in an emergency, we have introduced the System for Checking the Safety of People on Overseas Business Travel. The system is designed to centrally manage information on employees from Nikon Group companies in Japan who are traveling overseas on business. Operation of the system has begun at 12 Nikon Group companies in Japan, thereby strengthening our risk management system.
At the time of the flood damage in Thailand, we utilized the system for managing employees who had traveled to engage in recovery activities. At Nikon Corporation, as a measure to counter region-specific risks (illness, disasters, accidents, and crime), we strive to collect the latest information on potentially high-risk countries, particularly on developing countries and politically unstable regions, by, for instance, traveling to the location to confirm local conditions in person before sending our employees there. We also implement various other initiatives, such as conducting prior training for employees to be sent overseas, special education for managers, crisis management orientation for employees traveling overseas on business, and local emergency drills. (We also prepared and widely publicized a Hygiene Measures Manual at the time of the recovery activities in Thailand.)
Measures against Pandemic influenza
Based on our experience in preventing infection and the spread of infection during the global outbreak of the Pandemic influenza H1N1 in 2009, the Nikon Group revised its action plan in 2010 to include greater detail.
We are also continuing activities to prepare for the threat of a pandemic involving a highly Pathogenic influenza strain. These include information gathering, desktop exercises, and replenishing and increasing medical and emergency stockpiles.
Export Control
In addition to the export control of goods, Nikon Corporation is committed to reinforcing its management of the provision of technical information.
During the year ended March 31, 2012, following on from last year, we provided education via e-learning to all employees (attendance rate: 87.6%, attendees: 6,257). Additionally individual briefings were held twice for business divisions that often provide technical information overseas (total attendees: 42). Furthermore, as part of our measures to prevent roundabout exporting, we have promoted export control across the entire Group, such as formulating and beginning to implement rules when a product exported from Nikon Corporation to an overseas Group company is re-exported to another country.
Taking Electricity-Saving Measures after the Great East Japan Earthquake
Implementing power-saving measures
The Nikon Group is endeavoring to reduce CO2 by implementing a number of power-saving measures on a daily basis, including room temperature management, lights-out during lunchtime, reductions in standby power consumption, and "no overtime" days.
During the year ended March 31, 2012, dealing with the undersupply of power as a result of the Great East Japan Earthquake became a significant challenge. The Japanese government requested a 15% year-on-year reduction in peak power consumption, and Nikon Group companies in Japan responded to that request by enhancing monitoring and by means of the following measures:
- Thorough reductions in peak power usage at all business sites:
In addition to routine power savings, turn off lights in common areas, and turn off the heaters in washlet toilets
- Effective measures to cut peak electricity demand at each business site:
Take advantage of emergency power supplies, and concentrate the areas used for overtime work
- Operations on a rotating-group-basis:
Adopt a system whereby at least one group is shut down every day by utilizing a different calendar that includes Saturdays and Sundays
As a result, not only did we reduce peak power consumption, but we also kept overall consumption down. The reduction in power consumed at each of Nikon Corporation's plants and at the major Group manufacturing companies exceeded 10% yearon-year (calendar year basis). Utilizing this experience, we will continue to promote a shift to more energy-efficient production equipment, and we will strive to reduce the power consumption of computers and lighting in the administrative divisions and offices where the reduction effect had been large.