Strengthening Risk Management
Reason for Priority
Risk management involves properly identifying risks and implementing measures in advance to minimize the impacts of these risks. The importance of risk management is growing amid the diversification of the risks facing companies because of advancements in IT and AI technologies, the globalization of business, and environmental issues symbolized by climate change.
In addition, making the necessary preparations and arrangements before a major disaster strikes, such as a communicable diseases like the COVID-19 pandemic today or a major earthquake such as a Tokyo Inland Earthquake or a Nankai megathrust earthquake, will help to prevent damages and mitigate risks.
Taking action to identify various changing risks and to mitigate impacts on business, the environment and society using a medium- to long-term perspective represents one path to achieving sustainable development.
The risks facing companies are growing more diverse and complex due to the rapid evolution of technology and changes in the socioeconomic situation globally. Failure to respond to such risks appropriately could result in the loss of trust among stakeholders such as customers and shareholders and damages affecting the continuity of a company. For this reason, the development of an effective risk management system is becoming more important.
The Nikon Group conducts risk assessments annually, identifies important company-wide risks, analyzes and evaluates these risks, and regularly monitors its response. To further increase the effectiveness of risk response as a Group in the future, we are focusing on improving the functionality of the three lines of defense (first line: business departments; second line: corporate administration departments; and third line: internal audit departments) and strengthening mutual collaboration. Also, we continue to establish a highly efficient and flexible Group governance system in order to improve our response to risks globally, while taking into account changes in management environment and business structure.
Representative Director and Executive Vice President
CRO, General Manager of Group Governance & Administration Division
- *CRO：Chief Risk Management Officer
Main initiatives and results in the fiscal year ended March 31, 2021
Established A New Subcommittee for Risk Management
To properly respond to risks that might critically impact corporate management, the Nikon Group has set up the Risk Management Committee. In October 2020, we established a relevant subcommittee under the Risk Management Committee in order to more effectively respond to serious risks. With this subcommittee, we put into place a system for more flexibly supporting and monitoring by corporate administration departments regarding the implementation of improvement measures by business departments. In addition, led by the subcommittee, the relevant departments collaborated with each other to address and make improvements in serious risk events identified based on a comprehensive view incorporating the results of the risk identification survey.
Developing Information Security Management Systems
The Nikon Group complies with the personal information protection laws of each country where it operates, including the General Data Protection Regulation (GDPR) in the EU. We are also working to develop a system to prevent violations in order to achieve appropriate management of personal information under an information security management system.
In the fiscal year ended March 31, 2021, the Group companies in China responded to the China's Cybersecurity Law and the multiple level protection system for information system security, while in Singapore we prepared the necessary paper documentation. European Group companies continued to provide training on the GDPR and responded to the legal requirement on the transfer of personal information across borders following the UK's exit from the EU. As a result, there were no regulatory violations accompanies by fines.
Nikon Sustainability Report
For more details, please see the Nikon Sustainability Report.
In cooperation with the international community, Nikon conducts control of EXPORT.