Reason for Prioritization
Risk management, which involves accurately identifying risks and taking proactive measures to minimize their impact, is becoming increasingly important as the risks surrounding companies, including increasing geopolitical risks, digital transformation, and climate change, become more diverse.
In addition, necessary preparations and arrangements for contingencies such as pandemics, large-scale disasters such as an earthquake directly under the Tokyo metropolitan area or a massive Nankai megathrust earthquake, or international conflicts and wars, can help minimize damage and reduce risks.
Identifying various changing risks from a medium- to long-term perspective, and establishing countermeasures based on the resulting impacts to the economy, environment, and society, will lead to sustainable corporate growth.
The risks facing companies are growing more diverse and complex due to the rapid evolution of technology and changes in the global socioeconomic situation. Failure to respond to such risks appropriately could result in the loss of trust among stakeholders such as customers and shareholders and may lead to damages that affect the continuity of a company. For this reason, the development of an effective risk management system is becoming increasingly more important.
The Nikon Group conducts risk assessments every year, identifies important company-wide risks, analyzes and evaluates these risks, and regularly monitors its own responses. In addition, to further enhance the effectiveness of risk response as a group, we have strengthened our internal control promotion system and formulated Nikon Global Operating Standard that summarize management directives for day-to-day operations to ensure sound and efficient management of business activities. We will use those Nikon Global Operating Standard to establish an internal control improvement process. Furthermore, we continue to develop a highly efficient and flexible Group governance system in order to improve our ability to respond to global risks, while taking into account changes in management environments and business structures.
|Vision||Appropriate measures in place to address key risks|
|Strategy||Establishing a company-wide risk management system in line with environmental changes and management strategies|
|Indicator: Goal (achievement year)||
The Nikon Group has implemented a risk management system in order to deal appropriately with all risks that may have a significant impact on corporate management with the aim of sustainable growth for Nikon and Group companies.
To properly respond to risks that might critically impact corporate management, the Nikon Group has set up the Risk Management Committee. The Committee is chaired by the Representative Director and CRO and made up of Executive Committee members, with the Administration Department and Planning Section of Group Governance & Administration Division serving as Secretariats. For the fiscal year 2022, the committee met twice, once in October 2022, and again in March 2023.
In order to respond more effectively to major risks, we have established a system that enables continuous monitoring and flexible support for priority target risks. In fiscal year 2023, we plan to strengthen risk management by establishing processes to improve internal controls, developing an export control system, and reviewing BCM.
The Risk Management Committee has jurisdiction over all risks, but three committees under the Risk Management Committee; the Quality Committee, the Export Review Committee, and the Compliance Committee, are responsible for handling risks that require specialized measures. From a sustainability perspective, the Sustainability Committee also monitors risks with a focus on materialities and addresses risks related to the environment and social and labor.
Main Activity Themes of the Risk Management Committee in the Fiscal Year 2022
- Progress & challenges for key companies to be monitored
- Internal control-related (establishment of internal control promotion system, formulation of management standards)
- Conduct company-wide risk identification survey for fiscal year 2022
- Report on results of litigation survey
- Information security compliance with personal information protection laws in various countries
Main Specialist Committees Involved in Risk Management
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|Risk Management Committee||Risks|
|Export Control Committee*||Prevention of the Foreign Exchange Law Violations and Security Risk Management|
|Sustainability Committee||Sustainability in general, especially environmental (climate change, chemical management, water, etc.), social and labor (human rights, etc.)|
|Bioethics Review Committee||Bioethics|
- *Committees under the Risk Management Committee
Fiscal Year 2022 Goals and Results
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|Goals for Fiscal Year 2022||Results for Fiscal Year 2022|
|Risk identification surveys. Sharing and understanding of risk awareness throughout the company, including the head office management and audit departments||Conducted a risk identification survey, compiled measures to strengthen responses to major risks, and reported to the Risk Management Committee held in March 2023|
|Strengthen information security (cybersecurity, personal information protection) systems and continuously comply with applicable laws and regulations in each country.||Progressed as planned with measures to make the Nikon Group global network environment more secure
In addition, we took necessary measures to comply with the applicable personal information protection laws and regulations of each country
For more information, refer to Strengthening Risk Management in the Sustainability Report.
- Basic Approach
- BCM Activities Measures
Risk Management for Information Assets and Cybersecurity
- Information Assets Management Policy
- Information Management System
- Response to Information Security Incidents
- Information Security Education
- Information Security Audit
- Personal Information Protection
- Cybersecurity Infrastructure Development and Process Improvement