JDI > Investor Relations > Corporate Governance > Risk Management and Compliance

Risk Management and Compliance

Risk Management System

(Current as of July 1, 2016)

JDI has established rules and systems for preventing the materialization of various risks to the company and to minimize exposure to risks if they occur. Our fundamental approach to our company business activities is global application of a Code of Conduct to instill domestic and overseas employees with an understanding of the basics of compliance.

When formulating our medium-term management and business plans we take into account an analysis of risks associated with possible business initiatives and policies to address those risks. A conference is regularly held once per week to review the daily execution of business operations and is attended by Executive Officers, Division Managers, Business Unit Mangers and other mangers. Reports about global business operations are reviewed, risk factors are identified and firmly understood and actions to prevent or otherwise minimize risk exposure are implemented or reviewed.

JDI Ethics

JDI is fully committed to not only complying with laws and regulations but also a system of management that observes corporate ethics. We have created "JDI Ethics" to provide specific guidelines to all managers and employees on the importance of respecting compliance rules. A pocket-size version of JDI Ethics has been distributed and education is conducted to further promote compliance awareness among managers and employees. Also, an English-version of the Code has been distributed to JDI's overseas companies and is widely promoted.

* Reference

JDI Code of Ethics (JDI Ethics)PDF(131KB)

Compliance

In accordance with JDI's "Fundamental Policy for Compliance" a Compliance Committee has been established, which consists of representatives of compliance-related departments who meet to discuss and promote various compliance policies for the purpose of instilling and regularizing compliance awareness, and oversee a company-wide compliance administration system. Also, a compliance administrator is appointed in each Executive Officer’s business area of responsibility to promote full awareness of compliance polices to the employees of individual departments.

The Compliance Committee consists of the chair of the Committee who is an Executive Officer responsible for administering compliances and employees appointed by the chair from each department which is involved in crafting various compliance-related policies. The Compliance Committee is independent and meets regularly once every six months or whenever is necessary. Also, a conference of compliance administrators is held once per year or as necessary to provide an opportunity for administrators to understand the decisions made by the Compliance Committee and share compliance administration information with each other.

Compliance System

Diagram: Compliance System

Internal Information System

We have created a "Whistleblower System" (a hotline) for the purpose of prevention and early detection of compliance violations, encouraging a flexible self-improvement process and rectifying compliance violations in order to earn public trust. Employees who have or believe they have discovered a compliance violation are asked to contact the Whistleblower System hotline to discuss or report an alleged violation. The existence of this hotline also encourages greater compliance awareness inside JDI.

Internal Information System

Diagram: Whistleblower System

Information Security System

In order to eliminate the risk of unauthorized leaks of information handled by JDI we have issued an Information Security Basic Policy and various associated information security rules which are communicated to all managers and employees and strictly enforced. Ensuring the enforcement of company-wide information security policies is the task of an Information Security Committee, which was created to work continuously on insuring the precise implementation of risk assessment and risk management procedures and produce policies to prevent the loss, theft or unauthorized disclosure of confidential information. Also, the Information Security Committee controls a management system designed to maintain the safety of information assets pertaining to various kind of business.

Information Disclosure System

JDI has established a system to pro-actively support a high standard of fair and transparent disclosure of information in order to build and maintain trust with our stakeholders and exercise responsible management. The internal departments and subsidiaries of JDI have been familiarized with the timely disclosure rules stipulated by the Tokyo Stock Exchange and with JDI's own disclosure policy. An internal communication system has been created to make sure that information is reported to employees responsible for information disclosure to ensure that company information that can be disclosed is properly released. Timely disclosure of information is handled through the TDnet information disclosure system operated by the Tokyo Stock Exchange and other information is disclosed through such methods as the posting of information on JDI's company website, public notices, distribution of printed publications, press conferences and information sessions depending on the kind of information.

* Reference

Information Disclosure Policies

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