Strengthening Our Risk Management System

To ensure the sound and smooth operation of business, Nihon Kohden has established a management framework to prevent risks in overall business operations and has prescribed methods for dealing with risks when they occur.

The Board of Directors is responsible for establishing basic policies concerning risk management in overall Group business operations, and ascertaining the improvement and promotion status of the Group-wide risk management framework. The Risk Management Supervisory Divisions are tasked with improving and promoting the overall risk management system of the Nihon Kohden Group.
The risks present in the execution of business activities have been classified into nine types, and the Risk Management Divisions and Risk-Related Committees have been assigned to each risk type. The Risk Management Divisions provide training and support to operating divisions and subsidiaries with regard to their assigned risk types, and report the system improvement and promotion status to the Risk Management Supervisory Division. The Risk-Related Committees report to the Board of Directors and Management Council on matters including assessments of management system appropriateness, validity, and effectiveness for related risk types. The Internal Audit Department reports to the Representative Directors and the Board of Directors on risks discovered during audits. 
In FY2023, the Company established the Risk Management Committee and conducted risk assessments, working towards building a company-wide risk management framework.

Nihon Kohden’s offices, subsidiaries, and the departments in the head office conduct self-assessment of risk management regarding compliance and others using divisional inspection sheets. The Risk Management Supervisory Division verifies the progress of risk management system implementation and future responses, and reports the results of the self-assessment to the Board of Directors. Overseas subsidiaries also report to the Board of Directors on the development and progress of their risk management systems and measures to strengthen the implementation. 
In FY2023, the Risk Management Committee reported significant risks identified to the Board of Directors and promoted enhancing the company-wide risk management system. The identification of significant risks involved deliberations using risk maps and other tools and evaluating each risk scenario based on its impact on management and frequency of occurrence. Additionally, e-learning on risk management, including information security, was conducted for the group’s executives and employees. Regarding compliance, we made efforts to strengthen the global compliance system, and workplace study sessions were held in each department and subsidiary of the group to thoroughly disseminate the Nihon Kohden Code of Ethics and Conduct, which serves as the group’s behavioral standard, and to ensure the practice of compliance.

The Risk Management Regulations, which set forth the basic policies for risk management, classify risks into the nine types of risk shown in the following table.

The response to be taken when a risk occurs has been set forth in the regulations established for each risk type.

As a medical equipment manufacturer, Nihon Kohden focuses on product risk control to avoid accidents related to its products. In the event of accidents, troubles, or emergencies occurring at our customers, business partners, or any of the Nihon Kohden Group’s business locations, we have established and operate a reporting system to promptly take measures and minimize damage or harm. 
In order to prevent an accident and communicate quickly when an accident takes place, we have established a system to collect a broad range of information from clinical practice quickly and accurately as well as a framework for disseminating information.