Risk Management and Emergency Response
Risk management
Companies must manage risks, which are various and changing. The NYK Group therefore endeavors to assess the risks it faces at the companywide level and take appropriate management steps to deal with them. This includes the formulation of risk management guidelines and bylaws that provide the basis for regular, unit-level reviews of risk, together with companywide assessments at the management level. From this process, companies create systems and structures to appropriately deal with 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.*
* Risk items
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
- 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
NYK's information systems security programs are overseen by the Information Security Management Committee and its subsidiary organization, the Information Systems Security Committee. Programs that are formulated in response to information security conditions require the approval of both committees before they are incorporated into annual activity plans. Our goal is to be neither a victim nor a perpetrator of security breaches, and to this end we work to strengthen measures to combat computer viruses and improve network security, and we also develop group-level programs to improve information security. In addition, we offer e-learning opportunities on information security as part of our security educational activities for NYK Group employees.
Emergency response (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 the Great East Japan Earthquake of March 2011, we formulated a more practical BCP to provide for work from home, prepare the information infrastructure required, and review and replenish our emergency supplies. Training programs on the new BCP were conducted during the year.