Basic Approach and Policies
MITSUBISHI MOTORS has established a policy for business risk management in its “Basic Policy on the Establishment of Internal Control Systems” and promotes risk management activities throughout the entire MITSUBISHI MOTORS Group. We consider it one of our most critical management issues to appropriately assess risks to the MITSUBISHI MOTORS Groupʼs business, prevent risks from occurring, and engage in appropriate management to minimize the impact of risks if they do occur.
Development of Risk Management Framework
We have put in place and work to improve our risk management system for the entire Group through three types of risk management activities: “priority risk management,” “divisional risk management” and “affiliated company risk management.”
For priority risk management, we select risks faced by the entire MITSUBISHI MOTORS Group that have a potentially significant impact and a high degree of urgency. For each risk, we assign “risk owners,” and work as quickly as possible to mitigate these risks. In departmental risk management, we have appointed risk management officers in each division or plant. These officers work to reduce risks through repeated application of the PDCA cycle, which involves identifying and evaluating each risk, devising and implementing countermeasures, and monitoring. Risk management at subsidiaries and affiliates includes initiatives for addressing various types of risks encountered by Mitsubishi Motors’ subsidiaries and affiliates. We periodically confirms the status of activities such as improvement of business continuity plans (BCPs*), and proposes and directs improvements, as necessary.
These risk management initiatives are reported regularly to the Board of Directors as major internal control activities and their effectiveness is checked.
- Business continuity plan
BCM*
We are implementing disaster preparedness measures and Business Continuity Management (BCM) to prepare for large-scale natural disasters such as earthquakes and typhoons, as well as outbreaks of infectious diseases, based on our basic policy of ensuring the safety of customers, employees, and their families and promoting mutual support with local communities.
Since FY2020, the BCM Committee chaired by the officer in charge of internal control has met twice a year, and centrally administrated relevant internal initiatives to strengthen BCM activities during normal times and implement cross-functional measures across the Company.
Furthermore, we have formulated an emergency response manual and company-wide BCP operating procedures that include the establishment of an emergency response organization and the chain of command and has established a framework to enable an appropriate response in the event of a major incident. Assuming an emergency even during normal times, we are conducting emergency drills on a regional basis and company-wide BCP drills to confirm the collaborative framework between the company-wide task force and individual regions conducts these drills continuously in accordance with established plans. In preparation for unforeseen contingencies, we operate an emergency contact system to enable the rapid communication of information to senior management and ensure a swift and accurate response. We also secure multiple communication methods, including the distribution of IP radios at each site.
At our head office, we maintain emergency supplies sufficient for employees to remain on-site for three days (in accordance with the Metropolitan Tokyo Ordinance on Measures for Stranded Persons). Additionally, at each of our plants, we are working with neighboring municipalities to maintain emergency supplies and make arrangements to accommodate visitors.
- BCM is an abbreviation for “Business Continuity Management”