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          1. CSR / Environment

            Risk Management

            Risk Management

            Fiscal 2018 Objectives Fiscal 2018 Achievements Self-Evaluation
            • Carry out more effective risk management by optimizing and informing all employees of rules for responding to the occurrence of a major risk incident
            • Reviewed the Rules of Business Risk Management, and in December 2018 revised response rules for the occurrence of a major risk incident after optimizing them to match the situations of the organizations and functions. These revised rules were conveyed to the relevant in-house departments and to affiliated companies in Japan and overseas.
            Priority Objectives for Fiscal 2019
            • For the case of newly established and acquired subsidiaries, build a management system based on risk management-related rules, and convey and firmly establish response rules for the occurrence of a major risk incident
            • Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent

            Management Based on the Rules of Business Risk Management

            Sharp believes risk management is essential to fulfilling its corporate social responsibility, which entails meeting the expectations of stakeholders through the sustainable development of business.

            To this end, Sharp has formulated the Rules of Business Risk Management as a basic approach to risk management. In the Rules, risk items that could have a major impact on management are identified and managed as “specific risks” through the creation of a risk management system. For each specific risk, a functional department responsible for risk management across the entire company and a company/business unit responsible for risk management in their respective business domains collaborate to minimize risks and to prevent risks from actually occurring.

            To be able to respond to changes in the business environment and market, Sharp is constantly working to prevent specific risks from occurring and considering and formulating responses should risks occur, in line with the Rules of Business Risk Management. It does this by periodically making changes and additions to specific risks, assessing them, and changing their order of priority.

            Response to Actualization of Major Risks

            The Rules of Business Risk Management prescribe rules for emergency response, detailing responses if a major risk incident does come to pass. Taking prompt and appropriate action when an emergency situation occurs works to minimize loss and to prevent the damage from spreading not only across the company, but also to society at large. These emergency rules also specify action items to be implemented to ensure prompt and appropriate information disclosure to stakeholders.

            In fiscal 2018, Sharp further improved the efficiency of risk management by optimizing response rules in the event a major risk is actualized, and by conveying these rules to the relevant in-house departments and to affiliated companies in Japan and overseas.

            Promoting BCPs

            Sharp’s major plants and group companies have formulated BCPs*(business continuity plans). This effort is intended to expedite the continuation or early recovery of business in a large-scale disaster, such as an earthquake or an outbreak of an infectious disease. By regularly reviewing BCPs and holding training sessions, Sharp works to maintain and improve the business continuity capacity of the organization.

            Basic policies for BCPs shared across the Sharp Group are “First priority to human life,” “Proactive program and program for recovery from disasters,” and “Support for local community and business connections.” Sharp seeks to maintain and improve the business continuity performance of its organization through reviews to account for organizational and business changes and through drills. If, in the event of a major disaster, a significant impact on its business activities is anticipated, Sharp will establish an emergency headquarters at the head office to support and work with Sharp sites in affected areas and to implement an initial response focused on ensuring the safety of employees and their families and a business continuity and recovery response.

            In fiscal 2018, Japan experienced numerous natural disasters, including earthquakes, typhoons, and torrential rains. During these disasters, it was discovered that Sharp needed to speed up its system of confirming the safety and whereabouts of employees. To solve this problem, drills on this matter were held and response measures were thoroughly conveyed to all Sharp departments.

            Going forward, Sharp will continue to work towards business continuity management.

            • Business Continuity Plan