Risk Management

Business Continuity Plan (BCP)

Regarding our business continuity plan, ever since our Nishibiwajima Plant (assembling automotive switches etc. at the time) experienced large-scale flooding due to heavy rains in the Tokai region in September 2000, we have been working on establishing rules and training recovery personnel. As the rules were designed for any emergency other than earthquakes, we were able to prevent the spread of COVID-19, which was triggered by an emergency call from our Chinese affiliate in January 2020. Thanks to these rules, we were able to continue our business activities without causing any inconvenience to our customers, along with our overseas bases around the world, including Asia, Europe, North America, and South America. We were able to confirm that the risk management activities in our group-wide business continuity plan are functioning effectively even during the pandemic. In other words, our business continuity plan is comprehensively promoted by our company and entire supply chain as “All Hazard BCP.” This fiscal year, we will take on the challenge of first response training in the event of a major earthquake, targeting people who will actually be responsible for important duties in the event of an emergency. During this training, officers will also experience recovery activities in the event of a major earthquake. In this way, we will increase crisis awareness throughout the company. When an emergency occurs, we work together to carry out recovery efforts, led by employees who have improved their skills through training, and take measures to resume production at our plants as quickly as possible. We are also working with our suppliers to prepare for wind and flood damage, such as torrential rains that are a concern due to the effects of global warming, and typhoons that have hit Aichi Prefecture multiple times in the past. In activities based on our business continuity plan, we are working as a group not only to prepare for major earthquakes, but also to prevent natural disasters such as snow damage, wind and flood damage, infectious diseases such as the COVID-19, and threats to communications and networks. We understand that “disasters happen” and continue to promote risk management activities while evaluating activities such as production recovery drills in order to develop human resources who have the ability to adapt to disasters and improve the level of our overall Business Continuity Plan (BCP).

Conducting preventive activities against risks (including natural disasters), and initial action drills

In preparation for large-scale disasters such as Nankai megathrust earthquakes, we conduct evacuation drills for all employees, both day shift and night shift workers. Additionally, we are conducting training for emergency countermeasures headquarters personnel, simulating what would happen immediately after an earthquake occurs. Through this, we are developing headquarters personnel with crisis management skills who can take the initiative. This fiscal year, we clarified the roles of each department leading from the occurrence of a disaster to the restoration of production and implemented and enhanced training on these roles. At workplaces that have special processes that may cause a fire, fire extinguishing training is provided regularly to strengthen initial fire extinguishing response. This training is conducted under the guidance of the local fire department. This fiscal year, employees at manager level and above visited Toyota Motor Corporation’s disaster prevention training center Kodokan (Think-and-Act Center) with the aim of realizing workplaces with zero fires. We have concluded a disaster prevention agreement with the local government where our Head Office is located, and made arrangements in advance to accept local residents at our company and provide support such as disaster supplies and food. In the event of a disaster, we provide smooth and reliable support to the community, aiming to contribute to the quick reconstruction of the region.