AKEBONO REPORT 2011 Akebono Brake Industry Co. Ltd. 23Risk Managementakebono has established the Risk Management Committee an entity that promotes the construction of a risk managementsystem chaired by the Representative Director & CEO.As for our Groupwide efforts in fiscal 2010 we identified sixpriority categories including HR quality technology market overseas businesses and procurement in addition to sixother risk categories namely information control environment compliance crisis management intellectual propertyand exchange rate fluctuation. Plans were formulated toassign committee leaders to create countermeasures andtargets with schedules to attain them and to take action toreduce the chance of risk occurring. The results of theseactivities as of the end of the fiscal year were presented inan evaluation map that shows serious risk. In fiscal 2011 we identified 12 categories where the Groupwide effortsshould be taken namely HR quality technology marketchanges overseas businesses procurement disaster compliance information control environment intellectual propertyand post manager integration (PMI).Audit ReportAuditGuidanceReportRisk Management StructureBoard of Directors Board of AuditorsRisk Management Committee Determination and guidance for serious Groupwide risks Evaluation of implementation status and effectivenessRisk Evaluation CommitteeSelection of serious risks and guidanceDepartment Group company/Person in charge (general manager) promotion staffPromotion of Risk CSA (Control Self Assessment) response to known risk at divisionsPlanning and execution of response to compliance issuesGroupwide person responsible for serious risksConstruction of response structurePlanning and execution of response measuresCorporate Planning OfficeSecretariatAudit DepartmentRisk Management and Compliance StructureManagement Systemsassociates including those from Group companies. Hearingresults are reflected as business operation improvements.In addition akebono takes a firm stand against any antisocialbehavior that would have a negative impact on socialorderliness or sound corporate activities. akebono clearlystates in the Compliance Manual that constant efforts areneeded to ensure sensible just actions and the Companyendeavors to make this common knowledge among officersand associates. Furthermore in view of the recent increasein the number of people arrested on charges of violatingrules regarding insider trading akebono focused on countermeasuresagainst insider trading and conducted trainingseminars in fiscal 2010.Information Security ActivitiesTo adequately protect information assets and take appropriateinformation security countermeasures akebono establishedthe Information Security Policy Information Security Rules andInformation Security Committee and clarified processes forhandling information. According to degree of risk and importance we protect customer data as well as internal systemdata from a variety of threats including negligence accidents disasters and criminal activities. akebono also ensures informationsecurity by raising awareness through education andtraining based on security rules. Such awareness is cultivatednot only among the Board of Directors but also among staffmembers across the Group both in Japan and overseas. Weregard information security as a matter of utmost importanceand constantly improve our management system capable ofadapting to a changing environment.Maintaining a Compliance Structureakebono’s definition of compliance is not limited to simplyobserving the letter of the law and regulations. It alsoincludes the need for its staff to exercise good judgment inacting as responsible members of society by adhering tosocial customs and corporate ethics in both their work andprivate lives.In this spirit akebono has established the ComplianceCommittee chaired by the Director and Senior ManagingExecutive Officer. In addition to maintain a framework for compliance the Compliance Committee distributes a ComplianceManual to officers and associates and implements a range ofeducational programs to raise awareness of compliance.To prevent problems before they occur through early detectionand early resolution akebono established internal andexternal consultation services to deal with the questions andcomplaints of associates. The services handle inquiries from allthose working for the Group including contract workers.Consultation services have been outsourced to an external organizationthat specializes in corporate ethics and sexual harassment/human relationship hotlines. These consultations areconducted anonymously with details of any inquiries andreports as well as personal information kept confidential andusers protected from any prejudicial treatment. In fiscal 2010 the external consultation organization handled a total of 22cases 10 of which involved corporate ethics with the remaining12 involving sexual harassment/human relations. TheCompliance Committee is mainly responsible for investigatingthese queries and implementing remedial measures. Every yearthe Compliance Committee conducts hearings for associates.In fiscal 2010 hearings were held for a total of 194Feature Social Repor t Environmental Repor t Economic Report Reference Materials