Sustainability | GovernanceRisk Management
Roles and Responsibilities
In aiming for sustainable growth, TDK promotes company-wide measures against factors (risks) that hinder the achievement of organizational goals and has established an Enterprise Risk Management (ERM) Committee, chaired by a corporate officer appointed by the president, to implement company-wide ERM activities to appropriately manage them. Similarly, the Compliance Committee, the Crisis Management Committee, the Information Security Committee, and the Disclosure Committee that report directly to the Executive Committee have been established to respond to and take measures against each issue. The Corporate Officers serve as the chairpersons for each committee.
Regarding the activity status of each committee, TDK has ensured that a structure for receiving advice in relation to enhancing the risk management system and increasing its effectiveness (including, but not limited to, identifying, evaluating and reviewing material management risks at TDK and establishing effective countermeasures) is in place through regular confirmation and audit by the Audit & Supervisory Board Members and the internal audit department of the management operations described above. In addition, we will seek advice from specialists, including outside legal counsel and other experts, as needed regarding risks surrounding TDK.
Enterprise Risk Management (ERM) Committee
In ERM Committee, we promote company-wide risk management in a way we analyze and evaluate company-wide risk, identify risks which require countermeasures and decide a responsible function to be in charge of risks. As for each risk, the responsible function takes the lead in countermeasures and the progress is monitored in ERM Committee. We discuss the risk analysis evaluations and countermeasure situations at the Executive Committee and report them to the Board of Directors. Risks concerning sustainability, such as risks concerning corporate social responsibility, climate change, securing personnel and training personnel are also allocated to risk owner departments and director is assigned for it.
For more information on our risk management activities and major risks, please see the link below.
Through the Compliance Committee, which aims to supervise compliance-related risk management and advance initiatives, TDK promotes the prevention of violations of laws and regulations, etc. and strengthening prevention of recurrence. The Compliance Committee approves company-wide compliance activity policies and plans, select risks that we will focus on with respect to compliance, assign individual risks to risk owner divisions, and provide instructions to and monitor risk owner divisions.
Crisis Management Committee
The Crisis Management Committee has been established and operates with the aim of advance measures for serious disasters, accidents and incidents (natural disasters, accidents such as fire, infectious diseases, etc.) that may impede the survival or development of TDK as well as reducing subsequent damage and preventing the expansion of damage. In the event of an emergency, it will quickly set up a company-wide Crisis Management Headquarters and, while giving first priority to ensuring the safety of its employees, it will resume business as soon as possible and fulfill its responsibility to supply its customers in accordance with the Business Continuity Plan (BCP).
Information Security Committee
The Information Security Committee properly manages important information such as information provided by customers and personal information in compliance with laws and regulations, implements measures against cyber-attacks and internal information leakage, and monitors the security status of TDK to prevent cyber-attacks. In addition, in the event of an attack, the said Committee will promptly assess the situation, recover, and take measures.
The Disclosure Committee deliberates on and examines important corporate information and disclosure materials of TDK that are required for investment decisions by shareholders and investors, to ensure that it discloses appropriate information in a comprehensive, accurate, timely and impartial manner, in accordance with various laws and regulations regarding securities transactions and the rules and regulations of the stock exchange on which its shares are listed.
TDK has established a crisis management system to prevent secondary disasters and to ensure the safety of employees in the event of a crisis, and to ensure business continuity in order to fulfill its responsibility to continue supplying products to customers.
We have established a business continuity plan (BCP) that does not depend on the type of disaster or the cause event. We will conduct repeated exercises and drills so that prioritized works are not interrupted in an emergency, or if they are, they can be restarted as quickly as possible. In addition, we will promote activities that will increase effectiveness in case of emergency.
Risk Management Education
We have implemented individualized education on topics, such as corporate ethics, information security, import and export control, and compliance, to improve an understanding of risk management.