System of Group Risk Management

The Renesas Electronics Group formulated the Global Rule for Risk and Crisis Management within the Group and is building a risk management system for the entire Renesas Electronics Group.

Risks in overall corporate management are categorized according to the level of possible exposure and the degree of potential impact on the Group. The Group designates a division or office responsible for each risk category. When a management crisis occurs, the Group sets up a risk-specific task force in line with planned countermeasures. These risk-specific task forces do their utmost to minimize the negative impacts of a management crisis.

 

image, Risk Management Structure

Risk Management Structure

Risk Management Outside Japan

To perform risk management outside Japan, Renesas Electronics works with the head office division that supervises each overseas site, as well as the local risk management office, to identify potential risks associated with each risk event. Then, working with the local risk management office, we draft countermeasures and write manuals. There are certain risk events that call for us as a Group to be especially vigilant and to share information, such as new strains of influenza and terrorism. We are putting a system in place to notify Group employees, including those overseas, with the information we collect on such events. And in case of damage from natural disasters or other events at or near the Group, we have a system in place for all Renesas Electronics staff concerned with risk countermeasures to share information rapidly as we promote global risk management.

Establishing BCM

As part of enhancing its risk management system, the Renesas Electronics Group recognizes business continuity management (BCM) as the primary means to prepare for disasters and manage risks. Group companies, have worked proactively to establish and strengthen our BCM in order to protect the safety of employees, to continue fulfilling our responsibility to supply products and services, and to safeguard our management resources.

We performed a general examination of our BCM and made revisions based on the experiences of the Great East Japan Earthquake and the Kumamoto Earthquake, taking into account anticipated damage from an earthquake directly beneath the Tokyo metropolitan area or at the Nankai Trough. Specific issues raised included strengthening our existing safety measures and emergency response systems, as well as measures for damage mitigation, business continuity and quick recovery after a disaster. We also enhanced our measures for restoring operations in the event of a disaster (e.g., establishing recovery procedures and specifying who is in charge at these times), putting in seismic reinforcement, establishing alternate production networks, and enhancing risk communication with customers. Each division of Renesas Electronics concerned with these issues is working out countermeasures and putting them into practice. In addition, matters of importance are brought up for discussion at management meetings and communicated to individual business sites. In these ways, we are working to enhance the entire Group’s capacity for business continuity.

 

image, Flow of Recovery Activities Following an Earthquake

Flow of Recovery Activities Following an Earthquake