Risk Management

Basic Approach

To ensure sustainable development as a company, the NESIC Group needs to take appropriate measures to ascertain all manner of internal and external risks related to their business activities, perform risk assessments, take countermeasures against those risks, assess the implementation status of the risk countermeasures, and make improvements. Further, in the event that a risk manifests itself, it is necessary to quickly gather information, ascertain the situation and take steps to minimize damage or injury due to the risk occurring. We engage in risk management based on this approach.

Advancing Risk Management

The Management Quality Improvement Committee comes together for quarterly meetings at which it hears reports by marketing and sales units, operations units, subcommittees and other bodies on improvement measures taken and risks identified. The committee then considers and discusses actions to take going forward.

Three high-priority risks identified by the Management Quality Improvement Committee for the fiscal year ended March 31, 2023 are given below.
(ⅰ) Risk of quality issues and associated losses
(ⅱ) Risk that our management of affiliate companies will not function effectively

Risk Management Activities

NESIC engages in activities to prevent major risks from manifesting. Every year, NESIC identifies business risks that are unique to the nature of operations at internal departments and Group companies, organizational risks that are shared by multiple departments and Group companies, and risks that must be systemically avoided based on laws, regulations, internal rules, and manuals. These risks are effectively managed in a PDCA cycle.