Risk Management
Fundamental Approach
Daihatsu regards risks as obstacles to the Daihatsu Group’s sustainable business activities. Consequently, we strive to identify risks in all our corporate functions, and either eliminate or minimize them as appropriate.
We define risks from a variety of viewpoints such as their direct impact on profits, the trust of our customers and other stakeholders, and compliance with laws and regulations.
Risk Management Systems
At Daihatsu, various company-wide cross-sectional committees and supervisory departments work to understand risks related to safety, quality, environment, and other matters that exist in each of our corporate functions. Where necessary, we manage these risks through the establishment of rules and guidelines as well as the creation and distribution of manuals.
Critical Risks
Measures for Business Continuity Planning
Daihatsu strives to avoid or reduce risks through business continuity planning (BCP), aiming both to minimize the impact of natural disasters and other risks on our management, and to enable the business to recover and continue at the earliest opportunity.
More specifically, we have established a company-wide Disaster Management Committee, a cross-sectional organization in which all company departments participate. The committee has established an employee code of conduct for times of large-scale disaster, formulated initial response procedures, drawn up a recovery procedure manual, and clarified the process from the initial onset of the disaster to full recovery. By firmly instilling these codes and procedures through training, we aim to establish a corporate structure that is highly resilient to disasters.
Information Management
Information Security
Based on the recognition that information security is an important foundation for business continuity, we thoroughly disseminate the management rules for confidential information, products, and facilities. In order to ensure the rules, we provide information security education to employees, including training at the time they join the company. In addition, we have established an information security enhancement month to share the latest information in order to raise employee awareness of information security and prevent leaks of confidential information.
Protection of Personal Information
We have established a privacy policy and its management method in order to protect important personal information received from stakeholders. The privacy policy is regularly updated in response to amendments to the Act on the Protection of Personal Information. As part of our personal information protection activities, we conduct audits, select appropriate third parties, and sign memorandums of understanding on personal information protection. As a result of these efforts, there was no leakage of personal information in fiscal year 2022.
Initiatives to Respect for Privacy
In order to proceed and respond to privacy protection that is close to our customers, we have built a company-wide governance system and share issues in Privacy Governance Subcommittee. We are working to ensure safety and protect privacy in the way unique to Daihatsu by utilizing diverse information.
Risk Management Process
Daihatsu discusses risks relating to issues that are key to the company, such as safety, quality, and the environment, in standing committees (Internal Control Committee, Corporate Safety and Health Committee, Export Control Committee, Quality Committee, and Sustainability Committee) and periodically refers issues to the Board of Directors for decision-making.
Emergency Crisis Management System
To properly manage crises during emergencies such as disasters, Daihatsu established an initial response system with roles specified on three levels: the company-wide level, the business group level, and the workplace level. We have also established structures for taking action with the highest priority on ensuring the safety of employees. In addition, we are working to improve the accuracy and effectiveness of initial responses by conducting company-wide initial response training and safety confirmation training using the safety confirmation system in collaboration with Group companies.
Initiatives to Mitigate the Impact of Disasters on Buildings and Equipment
Daihatsu works to mitigate the impact of disasters on buildings and equipment in order to reduce any human injury and property damage in the event of a disaster and resume production immediately after shifting to the business restoration phase. Our new buildings sufficiently meet the latest earthquake-resistance standards. Furthermore, each of our buildings built according to former earthquake-resistance standards has received earthquake-resistance testing and been retrofitted as needed. With respect to production equipment, we identify hazards, such as collapse, fire, and power loss in the event of a disaster, as well as risks that may affect manufacturing quality and incorporate reasonable countermeasures into equipment specifications and operational methods.
Building a Disaster-resilient Supply Chain
To implement recovery support at an early stage and accelerate support in the event of a disaster, Daihatsu is working with its suppliers to develop a supply chain that is highly resilient against disasters. By establishing the Supply Chain Resiliency Keeper (SCRK) system during normal times, we are making supply chain information visible and preparing for a disaster. Specifically, we created a database based on information provided by suppliers and use this database to identify damage in a disaster and confirm whether support is needed.
Image of SCRK system operation
