Feature article

Special Feature 2012 - Nidec's Risk Management and Strategy

The most important issue for a manufacturer is to continuously provide a stable supply of quality products needed by society at a reasonable price.
In 2011, Nidec Group was faced with the Great East Japan Earthquake and the large-scale flooding in Thailand, which were both unprecedented natural disasters, threatening stable product supply. However, in dealing with the disasters through emergency measures, we were able to review Nidec's management policy and risk management.
The purpose of our risk management activities is to control risks and ensure a business environment where earnings can be continuously achieved. If profit is not secured, not only will it be very difficult to "generate employment opportunities," which is one of Nidec's Basic Management Creeds, but "supplying products that the world needs" and "being No.1 globally" will be impossible. In other words, Nidec will not be able to fulfill its corporate responsibility. The essence of our risk management can be described as thorough elimination of risks that threaten the stable supply of Nidec products and the stable earning of profits with our business. For this purpose, Nidec Group has made efforts to reduce risks based on the following three standpoints:
Two natural disasters that happened in 2011 showed us the effectiveness and limits of the risk diversification measures, which Nidec Group had implemented so far, and clarified the problems and tasks that need to be addressed from now on.

1. Diversification of Production Risks Tweet

Click here to discover how Nidec reduces country-specific risk by promoting multi-polarization of its production bases.

2. Diversification of Purchasing Risks

Click here to discover how Nidec has created a stable supply system through diversification of procurement sources.

3. Diversification of Clients and Regional Risks

Click here to discover how Nidec reduces market risks by broadening customer segments and sales areas.

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