Disaster Risk Management

NSK’s Approach

With a basic policy of placing top priority on securing human safety, NSK’s objective is to protect lives, as people are the foundation of its business, and to resume business activities as soon as possible after an emergency arises. To this end, the NSK Group has established a permanent Crisis Management Committee to oversee Group-wide initiatives to address disaster risk, including natural disasters such as large-scale earthquakes, wind and flood damage, infectious disease outbreaks, and other major incidents. The Committee plans and implements measures to prevent crises and minimize damage in the event that these risks materialize, and is also responsible for establishing and improving business continuity plans (BCP).

System

The Crisis Management Committee is an organization under the direct control of the CEO and includes the heads of functional and business divisions at the head office. During normal times, the committee decides basic policies and principal measures relating to emergency management.

In the event of a crisis, crisis response task forces are set up at the head office as well as at the site of the crisis, and relevant departments cooperate to handle the situation quickly and accurately according to the circumstances. Organizations have also been established in each region outside Japan to supervise crisis management in their respective locations. When a relevant emergency occurs, the Crisis Management Committee in Japan works with the organizations concerned to deal with the crisis.

Crisis Management Structure for Disaster Risks
Crisis Management Structure for Disaster Risks

Targets and Performance

Sixth Mid-Term Management Plan Targets (FY2019–2021) and the FY2021 Targets and Performance
PolicySixth Mid-Term Management Plan targetsFY2021 targetsFY2021 performance
Development of group crisis management systemsStrengthen cooperation with regional headquarters outside JapanStrengthen reporting and information sharing systems
  • Shared countermeasures implemented in each region to prevent the spread of COVID-19 infection and maintain business continuity during the pandemic
  • Shared the status of responses to risks arising from the Ukraine crisis
  • Conducted self-check on business continuity management (BCM) system using a check sheet
Optimize crisis management systemReview the management system based on crisis response results
BCP creation and effectiveness enhancementJapan: Improve BCP effectiveness for earthquake, wind, and flood damageEnhance capabilities to continue product supply
  • Strengthened emergency response capabilities through training for Site Crisis Response Task Forces
  • Conducted a trial of task force meetings by web meeting system through a Group Crisis Response Task Force workshop
  • Conducted BCP inspections based on a check sheet
Outside Japan: Establish a BCP against critical risksFormulate a BCP for critical risks
  • Expanded sites formulating a BCP
  • Verified and improved the effectiveness of formulated BCPs
Mid-Term Management Plan 2026 (MTP2026) Targets (FY2022–2026) and the FY2022 Targets
PolicyMTP2026 targets
FY2022 targets
Development of group crisis management systems
  • Implement a BCM in accordance with global standards
  • Strengthen the information sharing platform
  • Design and conduct a trial of the BCM processes
  • Streamline and establish redundancy in normal and emergency reporting as well as information sharing methods
BCP formulation and effectiveness enhancement
  • Formulate a BCP for critical functions
  • Enhance the effectiveness of the BCP formulated
  • Create specific BCP guidelines by function
  • Verify and optimize BCP effectiveness through drills, workshops, and BCP inspections

Initiatives

Strengthening Risk Response Capabilities with Business Continuity Planning
Setting Recovery Time Objectives

Recovery time objectives are set so as to enable a resumption of product supply to customers even after a crisis occurs. To ensure recovery within the target period, the NSK Group promptly implements measures to thoroughly minimize damage in the event of a disaster. By reducing the recovery period and securing the minimum inventory required, we will be able to continue supplying products. In anticipation of unforeseen damage and difficulties for recovery within the target period, we are in a state of preparedness so that business activities can be resumed using alternative functions.

Specific Initiatives

At NSK sites, including the head office and Group companies in Japan, we have been preparing for potential emergencies. These efforts include creating emergency organizational structures, establishing response procedures, and assembling useful tools. We also confirm the viability of the preparation through regular drills and address issues that emerge during the drills to make improvements. We are also working to improve BCP effectiveness in the event of a major disaster such as a large-scale earthquake. This is being done by preparing measures to minimize damage, securing emergency communication channels, establishing a reporting system, preparing for large-scale power outages, and ensuring backups for IT infrastructure.

Turning to regions outside Japan, we are formulating BCPs for our business sites based on the assumption of region-specific risks and verifying the effectiveness of the BCPs we have developed in Asia.