Risk Management
For information about our management approach and initiative for risk management, please see here(PDF:227KB).
List of Risks
Risks Covered
The Kawasaki Group defines risks as “factors or phenomena that hinder the execution of business operations or the achievement of organizational goals” and works to manage all risks classified as either external risks or internal risks (with the latter further classified as strategic risk or business risk), while giving due consideration to the potential beneficial effects associated with strategic and other risks.
List of Risks Covered
Risk category | Risk name | ||
---|---|---|---|
External risk
|
Hazard | Large-scale disaster Accident (caused by third party) |
|
Politics/Society | Government or social stability | ||
Legal or regulatory amendment | |||
Technology | Technological innovation | ||
Market environment | Competitor companies | ||
Customer needs | |||
Economic | Economic recession | ||
Stakeholders | Shareholders/activists | ||
Harmful rumors | |||
Human rights issue | Child labor/forced labor | ||
Internal
risk |
Strategic
risk |
Vision | Effectiveness of vision |
Decision making | Expansion into new business areas | ||
Capital investment | |||
Research and Development | |||
Corporate acquisition/merger | |||
Organization | Effectiveness of organizational structure | ||
Brand | Kawasaki Value (brand) | ||
Corporate governance | Supervising of management | ||
Business risk
(by division) |
Sales | Sales strategy | |
Collection of accounts receivable | |||
Customer response | |||
Development | Development themes | ||
Development capabilities | |||
Design | Design not coordinated with other relevant divisions |
||
Design capabilities | |||
Design quality | |||
Procurement | Enforcement of CSR Procurement Guidelines |
||
Procurement at appropriate price | |||
Securing of stable procurement partners |
|||
Management of procurement partners |
|||
Warehouse | Inventory management (materials, work in process, products) |
||
Production | Insufficient production capacity | ||
Production process management | |||
Production facilities | |||
Engineering operations | Management of individual commissioned projects |
||
Quality assurance | Deficient product servicing | ||
Logistics | Management of logistics channels | ||
Export and import procedures | |||
Overseas | Country risk | ||
Business customs | |||
Domestic operating sites |
Operation/maintenance | ||
Specific local conditions | |||
Accounts | Accounting methods | ||
Financial reporting | |||
Tax affairs | |||
Financial affairs | Interest rate rise | ||
Foreign exchange rate fluctuation | |||
Capital procurement | |||
Financial management | |||
Management of pension assets | |||
Company stock | |||
Credit rating | |||
Management | Budget/planning/management | ||
Evaluation of business performance | |||
Consistency of goals and strategies | |||
Public relations | Media response | ||
Legal affairs | Contract conditions | ||
Response to legal action | |||
Information processing/ IT |
Information leakage | ||
Network/system failure | |||
Information infrastructure | |||
CSR | CSR activity | ||
External reporting | Evaluation of internal controls | ||
Information disclosure | |||
Environment | CO2 emissions | ||
Environmental pollution | |||
Compliance | Irregular action by organization | ||
Irregular action by employees | |||
Harassment | |||
Compliance with corporate ethics, social norms, laws and regulations |
|||
Anti-monopoly and fair trade laws | |||
Export management | |||
Social contribution | Social contribution activity | ||
Business risk
(crossdivisional) |
Personnel/labor | Human resources/ personnel deficiency |
|
Safety and health management | |||
Labor management | |||
Personnel employment conditions | |||
Human rights issues | |||
Business operations | Management capabilities | ||
Affiliated company management | |||
Communication | |||
Powers/restrictions | |||
Operational efficiency | |||
Outsourcing | |||
Intellectual assets (knowledge/expertise) |
|||
Intellectual property | |||
Operational alliances | |||
Security | |||
Information sharing | |||
Credit management | |||
Work environment |
Group-Level Risks
In fiscal 2020, data on major risks identified by the internal companies and business divisions were collated, and the Corporate Risk Management Committee then identified 13 categories of major risks that could have a serious impact on operations. These risks are subject to monitoring in March of every year by the Head Office division responsible for monitoring. The risk categories are reviewed every year.
Risks Identified as Group-Level Risk for Fiscal Year Ending March 31, 2021
Name of risk | Head Office division responsible for monitoring |
---|---|
Human risk | Human Resources Planning Department |
Procurement risk | Procurement Division |
Quality management risk | TQM Department |
Labor, safety and health risk | Safety & Health Management Department |
Incomplete market response risk | Corporate Control Department |
Individual commissioned project management risk | Corporate Planning Department |
Foreign currency risk | Finance Department / Corporate Control Department |
Large-scale disaster risk | Risk Control Department |
Information leakage risk | IT Strategy Planning Center |
Contract risk | Legal Department |
Compliance risk | CSR Department |
Development and design risk | Corporate Technology Division |
Environmental and climate change risk | Environmental Affairs Department |
Risks Requiring Group-wide Action
In fiscal 2020, within Group-level risks, we specified three items as risks requiring Group-wide action. To deal with these risks, each division at the Head Office responsible for action is designated to take the main role in formulating and implementing response measures in their area of responsibility.
Risks Specified as Risk Requiring Group-wide Action for Fiscal Year Ending March 31, 2021
Name of risk | Head Office division responsible for monitoring |
---|---|
Large-scale disaster risk | Risk Control Department |
Cyber-attack risk | IT Strategy Planning Center |
Environmental and climate change risk | Environmental Affairs Department |
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