Risk Management

Basic view

In order to minimize loss by emergence of risks and improve sustainable corporate value of the entire Group by managing various internal and external risks related to business activities, Murata periodically carries out initiatives to classify and evaluate risks, take preventative measures.

Promotion structure

Murata Manufacturing Co., Ltd. has established a Risk Management Committee as a subordinate body of the CSR Management Committee, which is chaired by the Representative Director. This committee is chaired by a Vice President and comprises Directors from departments of General Affairs, Personnel & Industrial Relations, Corporate Communications, Intellectual Property, Environmental Affairs, Information Systems, and Legal Affairs. Together, the committee members study ways to address risks company-wide. 
We have also established the Information Security Subcommittee and BCM* Subcommittee as subordinate organizations to study and take measures to address particular risks.

*BCM (Business Continuity Management)

Management activities that are operated on an ongoing basis to formulate, maintain, and renew the BCP (Business Continuity Plan), to allocate budget and resources for business continuity, to take preventative measures, and to conduct, check, and continually improve education and training for permeating initiatives.

Understanding risks

Responsible Department for each risk identifies and evaluates risks that Murata actually faces and will possibly face in the near future and formulates treatment measures twice a year. The Risk Management Committee deliberates those contents, and, if necessary, instructs additional measures. Each risk is classified in accordance with its frequency and impact so that management understands more important and urgent risks to take appropriate risk treatment measures.

Our initiatives

Strengthening of information security

For Murata to continue to grow, it is essential to protect information that is a company asset, which includes technological know-how and other trade secrets. Accordingly, by establishing an organization for information security, we are working to carry out development and implementation of information security measures throughout the company.

Besides establishing the Information Security Policy and the Information Security Management Regulations, in order to have all officers and employees in and outside of Japan understand information security and correctly handle information, we are conducting initiatives such as distributing the Information Security Guidebook, issuing an email newsletter concerning information security, and promoting internal training.

In order to prevent suspension of business activities, etc. due to leakage of Murata’s trade secrets or personal information or due to cyber-attack, we have installed anti-malware software on all of the Company’s computers and services, we check internet communications and control internet access, and we conduct vulnerability assessments and implement measures as appropriate, etc. Furthermore, we monitor logs globally, we have built a system to respond to incidents that may result in security breaches, and we promote responses and measures to prevent cyber-attacks that change on a daily basis.

Management of disaster risks

A major natural disaster has the potential to bring business to a stop for extended periods. Consequently, Murata has devised a business continuity plan (BCP) to ensure that we can fulfill our duty to provide customers with a stable supply of products. We are conducting initiatives to minimize damage and continue business such as ensuring earthquake resistance and safety for buildings and production facilities, constructing backup frameworks for our communications and information systems and maintaining supply from inventory.
When procuring materials, we have created a database of material supplier production sites and we are working to quickly implement initial response measures by developing an initial response system. In addition, there is a flow chart of initial response measures based on risk scenarios so that procurement activities are not delayed when risks such as natural disasters materialize. Furthermore, with regard to important materials we are promoting measures such as implementing a multi-vendor system, confirming the BCP implementation status of our vendors, and ensuring sufficient inventory to cover the expected recovery period, if risks materialize, as measures to ensure stable procurement.
In addition, we are working to confirm effectiveness and continually improve initial response measures, improve crisis response capabilities, and find points to be improved regarding BCP by conducting periodic disaster drills and business continuity drills. The head office’s crisis management headquarters and Okayama Murata Manufacturing conducted drills in March 2019.
General firefighting drill

Risk of Counterfeit Products

Murata is taking action to protect trademarks in each country.
We are aware that, unfortunately, counterfeit Murata products are in circulation, in particular in the East Asian region. These counterfeits are handled by electronic component trading companies other than our authorized dealers and electronic commerce sites other than those belonging to the Murata Group. The counterfeit products do not meet Murata’s quality standards, and may result in major equipment malfunctions.

To ensure that our customers do not mistakenly purchase counterfeit products, we recommend that they purchase only from Murata sales offices or authorized Murata dealers.

In addition, with the cooperation of government organizations and other entities around the world, we are working to crack down on businesses selling illegal counterfeit products (administrative investigation, criminal investigation, and civil suit), prevent sales of counterfeit products on electronic commerce websites, and correct and eliminate acts such as the use of trademarks without permission and false representations, etc.
In the future, we will continue to monitor the situation and take action.