Risk Management and Emergency Response
Risk management
The NYK Group performs general assessments from companywide perspectives of the risks to its business, and endeavors to manage itself as appropriate to circumstances. More specifically, it formulates risk management guidelines and bylaws, regularly identifies the conceivable risks to the operations of individual units, performs companywide assessments, and develops systems and organizations that appropriately adapt to risk. We also provide risk management education and training for NYK Group employees to foster an awareness of individual responsibility for risk management in the execution of operations.*1
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Risks that could potentially impact the NYK Group's business results, share price, or financial status (Description of "operational risks" in NYK Securities Report)
- A major shipping accident
- Changes in the overall shipping and freight markets
- Competitors
- Fluctuations in currency exchange rates
- Changes in fuel prices
- Changes in regional economic conditions affecting global operational developments
- Impacts of incidents arising during system development or operation
- Stronger legislation on environmental preservation, safety, and security
- Air transportation services
- Relationship with partners and suppliers
- Operational restructuring
- Medium-term management plan and emergency structural reform project
- Investment plans
- Fluctuations in interest rates
- Disposal of vessels
- Valuation losses on investment securities
- Retirement benefits plan
- Evaluation of prospects for recovery of deferred tax assets
- Litigation
Information security programs
To head up information systems security, NYK has established an Information Security Management Committee and a subsidiary Information System Security Committee that approve the formulation and implementation of annual activity plans. These plans include measures to protect against computer viruses and other network security issues as well as measures to strengthen overall information security for group companies. In addition, we offer e-learning opportunities on information security as part of our security educational activities for NYK Group employees.
Formulation of business continuity plan
NYK has prepared business continuity plans (BCP) for all the major operations in the headquarters and group companies so that, in the event of damage from a disaster or catastrophic event, the company will be able to maintain its important functions uninterrupted wherever possible, or if interrupted, to quickly restore them. After Great East Japan Earthquake of March 2011, we established a task force chaired by the president to collect and organize information and develop policies and programs both for the company's operations and for assistance to the disaster area. In addition, we are formulating and verifying a more practical BCP, including provisions that will enable employees to work from home.