Mazda identifies issues related to various internal and external risks and controls them based on their degree of importance, so as to ensure continuous, stable progress of business activities.
At Mazda, in accordance with the Basic Policy on Risk Management, Risk Management Regulations, and other related internal regulations, individual business risks are managed by the department in charge of that business area while company-wide risks are appropriately handled by departments that carry out business on a company-wide basis. Mazda continues to strengthen risk management following the PDCA cycle.
During emergencies, such as natural disasters or situations that create serious managerial consequences, Mazda takes appropriate measures in reference to its internal regulations, including establishing an emergency response taskforce when necessary.
Moreover, risk management is further enhanced annually through the establishment of key agenda items in the Risk Compliance Committee and confirmation/evaluation of the risk management status in each department.
In FY March 2013, the Emergency Management Regulations was consolidated into the Risk Management Regulations. Mazda continues its activities to identify and reduce various internal and external risks.
- For details of business risks, please see Annual Report 2014.
With the advance of IT and globalization and the growing awareness of environmental issues and compliance with the law, the environment surrounding the company's activities is rapidly changing, and it can be expected to change even further in the future. In order to realize this "Corporate Vision," it is necessary to specifically address these changes in the environment and minimize the potential risks that threaten to interfere with the continuous, safe furtherance of our business activities. The company must also create a system that will allow a rapid recovery when abnormal or emergency circumstances occur and gain the strong trust from our customers, shareholders and the community. The entire Mazda Group shall address risk management and work toward becoming a company that can truly be trusted.
In the following ways, Mazda shall strive for Enhancement of Corporate Value and Harmony with the Community thereby realizing the company's "Corporate Vision."
- Ensure the health and safety of all those who make up the Mazda Group as well as local citizens
- Maintain and increase the trust from the community
- Make appropriate use of the tangible and intangible corporate assets of the Mazda Group
- Secure interests of the stakeholders, earn their trust and meet their expectations
- Support the functions of the organization and seek a rapid restoration of business activities at the time of abnormal circumstances or emergencies
All corporate officers and all employees shall have responsibility for carrying out risk management based on the awareness that risk exists in every facet of business activities. Risk management shall be addressed from all angles at every stage of operations.
Risk management activities shall be divided into two types:
- Continuous efforts to prevent and mitigate potential risks existing in everyday duties and the promotion of the proactive use of these activities (risk management).
- Minimization of damage resulting from crisis and rapid recovery (crisis management). The necessary systems and rules shall be established for each.
Scope of Application
- Shall include the control of all types of business risk.
- Shall apply to the entire Mazda Group including subsidiaries and related companies.
Mazda has been systematically undertaking preparatory measures for major earthquakes since FY March 2004. Examples of such "hardware" and "software" measures include quake-proofing buildings and facilities, and raising embankments, as well as maintaining emergency-contact networks, organizing self-disaster-defense teams, developing manuals, selecting tsunami evacuation areas, and carrying out evacuation drills.
Specifically, disaster drills are held annually both jointly with the fire authorities and solely by Mazda's self-disaster-defense teams to confirm initial response to an emergency. In FY March 2014, 18,200 employees participated in disaster drills, fire drills and first-aid drills (using AED).
Further, based on lessons learned from the Great East Japan Earthquake, Mazda has communicated to all employees the procedures for initial responses and manuals for operating self-disaster-defense teams, which were newly clarified in FY March 2014, with the aim of confirming and reviewing the precautions and initial responses in each workplace. Steady efforts to enhance both "hardware" and "software" aspects of emergency readiness will continue in preparation for the Nankai Trough Earthquake or other large earthquakes and tsunami associated therewith.