Risk Management
- Approach to Risk Management
- Risk Management System
- Auditing by the Internal Audit Department
- Risk Management Initiatives
Approach to Risk Management
Tokyo Electron is building and developing a risk management system to respond appropriately and promptly to risks that are growing increasingly complex and diverse as society and the business environment change. We identify cross-division and comprehensive risks across the entire Group to build a solid financial foundation based on the new Medium-term Management Plan that is competitive globally. We make decisions and supervise particularly material risks at the Corporate Officers Meeting and the Board of Directors, and implement countermeasures without fail alongside each of the Group companies and related departments.
We believe accurately understanding the risks and impacts that we may face in our businesses with an eye on the future, viewing them as opportunities for business growth and appropriately addressing them are essential to sustainable growth as a company that is trusted by society.
Risk Management System
We have established the organization to oversee the entire Group at our headquarters and carry out enterprise risk management*¹ to promote more effective risk management. This organization, together with the respective departments responsible for each operation, comprehensively identifies a wide range of risks associated with our business activities, such as compliance, human resource, labor and business continuity risks, and classifies those with high impact and probability as our material risks.
In addition to holding management workshops and training for employees and raising awareness companywide, we are also working to strengthen the PDCA cycle and improve the effectiveness of risk management by formulating and executing measures to mitigate material risks, monitoring the effect of said measures and holding discussions at major internal meetings. Specifically, we review the response status of the Executive
Department and each of the Group companies regarding the identified material risks at the BUGM Meeting, quarterly meetings and the CSS, etc., and decide a response policy at the Corporate Officers Meeting. We ensure the operating rhythm of this procedure and also report periodically to the Board of Directors.
Additionally, we are continuing to focus on the revision and operation of our BCP, including responses to COVID-19, and are rapidly executing business continuity measures. In fiscal year 2021, we introduced CSA*², with each risk owner of the Group further strengthening risk management
in the 13 defined categories. We will continue to implement autonomous and highly effective risk management.
*1 Enterprise risk management: Group-wide systems and processes related to risk management activities
*2 CSA: Control Self-Assessment. Internal risks and controls are evaluated and monitored by those who are actually performing the duties with the goal of building and maintaining an autonomous risk management
system.
Auditing by the Internal Audit Department
The Global Audit Center serves as the internal audit department for the entire Group, conducts audits based on plans, provides instructions and support for making improvements to issues and confirms the progress of these improvements. The Group’s internal control over financial reporting during fiscal year 2022 was evaluated as effective by the independent auditors, the same as in the previous fiscal year.
Risk Management Initiatives
We have begun to address emerging risks from a medium- to long-term perspective, going a step further than its conventional approach of assessing the current risk management state, identifying known and unknown risks that may surround the Company in the future and examining mitigation measures.
In fiscal year 2022, the 13 risks identified to date were reviewed and reevaluated from the perspective of their potential to have a significant impact on our operating results, financial condition and cash flow. We then pushed forward risk management initiatives for each identified risk even further.
Item | Main Potential Risks | Main Risk Management Initiatives |
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1.Market Fluctuation |
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2.Geopolitics |
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3.Research and Development |
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4.Procurement, Production and Supply |
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5.Safety |
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6.Quality |
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7.Laws and Regulations |
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8.Intellectual Property Rights |
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9.Information Security |
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10.Human Resources |
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11.Environmental Issues |
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12.Novel Coronavirus (COVID-19) |
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13.Other Risks |
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*1 Safety First: Refer to Safety Management Framework
*2 Refer to Medium- and Long-term Environmental Goals