Risk Management

Risk Management

Fiscal 2020 Objectives Fiscal 2020 Achievements Self-Evaluation
  • At newly established and acquired subsidiaries, build a management system based on risk management-related rules, and establish and firmly convey response rules for the occurrence of a major risk incident
  • Built and firmly put into operation a risk management system at subsidiaries Sharp Display Technology and Sharp NEC Display Solutions
Priority Objectives for Fiscal 2021
  • Improve and maintain a rule-based risk-management system across the Sharp Group, and ensure response rules for the occurrence of a major risk incident
  • Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent

Management Based on the Rules of Business Risk Management

Sharp believes risk management is essential to fulfilling its corporate social responsibility, which entails meeting the expectations of stakeholders through the sustainable development of business.

To this end, Sharp has formulated the Rules of Business Risk Management as a basic approach to risk management. In the Rules, risk items that could have a major impact on management are identified and managed as “specific risks” through the creation of a risk management system. For each specific risk, a functional department responsible for risk management across the entire company and a business unit responsible for risk management in their respective business domains collaborate to minimize risks and to prevent risks from actually occurring.

To be able to respond to changes in the business environment and market, Sharp is constantly working to prevent specific risks from occurring and considering and formulating responses should risks occur, in line with the Rules of Business Risk Management. It does this by periodically making changes and additions to specific risks, assessing them, and changing their order of priority. The results are reported to the Internal Control Committee, which is chaired by the Chairman of the Board.

Response to Occurrence of Major Risks

The Rules of Business Risk Management prescribe rules for emergency response, detailing responses if a major risk incident does come to pass. Taking prompt and appropriate action when an emergency situation occurs works to minimize loss and to prevent the damage from spreading not only across the company, but also to society at large. These emergency rules also specify action items to be implemented to ensure prompt and appropriate information disclosure to stakeholders.

In fiscal 2020, at newly established and acquired subsidiaries, Sharp built a management system based on risk management-related rules, and established and firmly conveyed response rules for the occurrence of a major risk incident.

Promoting Business Continuity Management

Sharp’s major plants and group companies have formulated BCPs (business continuity plans). This effort is intended to expedite the continuation or early recovery of business in a large-scale disaster, such as an earthquake or an outbreak of an infectious disease. By regularly reviewing BCPs and holding training sessions, Sharp works to maintain and improve the business continuity capacity of the organization.

Basic policies for BCPs shared across the Sharp Group are “First priority to human life,” “Proactive program and program for recovery from disasters,” and “Support for local community and business connections.” Sharp seeks to maintain and improve the business continuity performance of its organization through reviews to account for organizational and business changes and through drills. If, in the event of a major disaster, a significant impact on its business activities is anticipated, Sharp will establish an emergency headquarters at the head office to support and work with Sharp sites in affected areas and to implement an initial response focused on ensuring the safety of employees and their families and a business continuity and recovery response.

In fiscal 2020 as in fiscal 2019, there were natural disasters, including earthquakes, typhoons, and torrential rains. To respond to this situation, Sharp held drills in confirming the safety and whereabouts of employees as part of efforts to thoroughly convey measures to all departments. In response to the global Covid-19 pandemic, the company put in place infection-prevention measures for employees. These measures are based on considerations such as the workplace physical environment, the number of employees in a given team, the job category, and job duties. When an employee was found to have been infected, we took steps to ensure business continuity. We would report the case promptly to the Head Office and work with local health authorities to help track and identify close contacts.

Going forward, Sharp will continue to work towards business continuity management as responses to all forms of disasters and pandemics.