AKEBONO REPORT 2013
Compliance StructureAs it expands its business globally, it is important thatAkebono, beyond complying with the law and regulations,correctly understands and fulfills its corporate socialresponsibility. For these purposes, we have establishedthe Compliance Committee, chaired by the Director andSenior Managing Executive Officer, along with the“akebono Global Code of Conduct” and “akebono GlobalStandard of Behavior” to be observed by each associate.We are implementing a range of educational programsin order to raise the level of compliance awarenessamong our associates. In fiscal 2012, we asked allassociates to take a “compliance proficiency test.”For the prevention and early detection of problems,we have set up in-house and outsourced consultationcounters to accept inquiries from people, including contractworkers. The inquiries can be made anonymously.We are making sure to protect the confidentiality of information,including inquirers’ personal profiles. In fiscal2012 a total of 15 such inquiries were received and theywere addressed under the leadership of the ComplianceCommittee.Akebono conducts hearings for associates every yearon compliance. In fiscal 2012 we included the overseassites in the scope and conducted hearings for over 100persons inside and outside Japan. As a result, we haveidentified a lack of communication as a Groupwide issue,based on which we have revised the content of training.Furthermore, in light of the recent crackdowns on cartelin the auto parts industry, we conducted additionaltraining and campaigns on the issue in both domesticand global bases.Information Security ActivitiesAkebono has established the Information SecurityCommittee in addition to various in-house rules and regulationsin order to protect information systems and dataowned in-house or provided by our customers from allkinds of risk, including accident, disaster and crime. Infiscal 2012, we revised our information security guidelines,making them shorter and more easily understoodby our associates both inside and outside Japan. Wealso established working groups under the InformationSecurity Committee, creating a structure for self-checksto be done at each section on particular risks.While ensuring strict adherence to related laws andregulations, we are continuously upgrading our informationmanagement structure to match the changing businessenvironment. In light of the heightening risk ofinformation leakage due to global business expansion,growing dependence on IT and the increased liquidity ofemployment, we are developing a structure to strengthencontrols on critical information.Risk ManagementAkebono has established the Risk Management Committee,an entity that promotes the construction of a risk managementsystem, chaired by the Representative Director & CEOand participated in by five officers in charge of riskmanagement and a Chief Financial Officer (CFO). The RiskEvaluation Committee established under it, chaired bythe Representative Director & Executive Vice Presidentidentifies critical issues and supervises risk managementactivities.As for our Groupwide efforts in fiscal 2012, we identified14 categories as critical issues, namely, quality, overseasbusinesses, technology, disaster, Euro-zone debt crisis, yenappreciation, HR, market changes, power shortage, intellectualproperty, procurement, information control, complianceand the environment. The results of actions taken to mitigaterisk in each category are summarized at the end ofeach fiscal year to be used as a reference in the followingfiscal year.For fiscal 2013, we will classify Groupwide critical risksinto priority management issues (six categories: disaster,procurement, overseas businesses, environment and safety,information control and quality) and regular managementissues (six categories: market and business climate changes,technology, compliance, intellectual property, currencyfluctuation, and HR recruitment and development). Activitiesto address the priority management issues will be monitoredby the Risk Evaluation Committee. Moreover, a special subcommitteehas been launched in fiscal 2013 to work on businesscontinuity management (BCM) in a focused manner.Audit ReportAuditGuidanceReportRisk Management StructureBoard of DirectorsDepartment, Group company,other section leaders◆Planning and implementation within thedepartment, Group company,or section in charge◆Self risk assessment: Promotion of ControlSelf Assessment (CSA); response to risksidentified within the department, etc.Persons in charge of eachGroupwide critical risks◆Organization of task force◆Planning and ImplementationRisk Evaluation CommitteeWorking meeting (3/year)◆Supervision of special risk management activitiesTheme: BCM◆Supervision of activities to addresspriority management issuesGeneral meeting (1/year)◆Supervision of activities to addressregular management issuesRegularGlobalRiskInformationCenterEmergencyResponseHeadquartersAudit &SupervisoryBoardAuditDepartmentRisk Management Committee◆Determination and guidance forserious Groupwide risks◆Establishment of a task force◆Evaluation of implementationstatus and effectivenessRisk Management, Compliance Structure and Information Security ActivitiesWe are upgrading our risk management, compliance and information security-related activities, keeping aclose eye on the latest business trends.