Risk Management
NSK’s Approach
At the NSK Group, the executive management team oversees the implementation of a risk management system guided by the Group’s basic internal control policy. Risks faced by the NSK Group are identified, categorized and prioritized by the risk management department, before being assigned to responsible departments. This system is designed to avoid and minimize risks for the entire Group and to coordinate response measures when risks actually materialize.
System
Risk Management Systems
NSK works to build a risk management system based on clearly stipulated fundamental principles aimed at effectively enabling global Group management and internal control functions. Every year, all the business sites perform their own risk assessment, classifying, analyzing, and evaluating risks in accordance with changes in the social environment, the frequency of risk occurrence, the size of impact, and other factors to identify risks that should be addressed. The Corporate Planning Division Headquarters and the Finance Division Headquarters coordinate with business and regional and functional headquarters regarding risks at each division and each business site, which are managed in accordance with prescribed reporting systems. While putting in place preventive measures, the Company devises steps to swiftly and appropriately act in the unfortunate event a risk is manifested, and then works to mitigate the impact. In addition, the internal audit division coordinates with the Audit Committee to monitor the tasks carried out by executive divisions, build an internal control system, and audit operational status. As NSK’s business activities spread to more areas, the range of anticipated risks widens. The Company has identified 10 types of representative risks deemed of high importance according to what they entail and likelihood of occurring, their degree of impact, and mitigation measures.
Risk Management Flow
Risk Management System
Representative Risks Deemed of High Importance (Business Risks)
As NSK’s business activities spread to more areas, the range of anticipated risks also widens. However, the Company has identified 10 types of representative risks deemed of high importance (business risks) according to what they entail and likelihood of occurring, their degree of impact and mitigation measures. View these risks by using the link below.