Risk Management System

Approach to risk management

Because more than 90% of Advantest sales depend on overseas markets, we must implement risk management across multiple countries and regions. We believe that the key to quick response is a management system that addresses risks both top-to-bottom and bottom-to-top.

Risk management system and organization

At Advantest, each unit carries out risk management under the risk control policy designated by the Internal Control Committee, and the Internal Control Committee supervises and assesses the statuses of each unit before offering feedback.
Compliance risks are reported to the Chief Compliance Officer (CCO) in a timely manner or a regular basis, and CCO reports risks to the Executive Management Committee and the Board of Directors. Certain types of risk information are reported directly to the Executive Management Committee, Board of Directors, and the Audit and Supervisory Committee.
Emergency response is allocated to the Risk Management Group.

Process of risk management

At Advantest, management supervises risk analysis and risk response implemented at the unit level, and at the same time, regarding corporate-level risks, the Board of Directors or the Executive Management Committee makes timely decisions and gives instructions to relevant departments. Thus, risk management processes at Advantest consist of bottom-up and top-down approaches.

Bottom-up risk management

Based on the management plan formulated by the Board of Directors and the Executive Management Committee, each unit formulate the measures of its own division. The Internal Control Committee defines the factors that may hinder achievement of those measures as risks. Each unit autonomously conducts risk management based on the risk management policy established by the Internal Control Committee and reports to the Internal Control Committee twice a year. The Internal Control Committee supervises and evaluates the management status and provides feedback to each unit. In addition, the secretariat of the Internal Control Committee assists each unit in autonomous risk management.

Top-down risk management

Corporate-level risks are reported to the Executive Management Committee or the Board of Directors in a timely manner, through the director in charge, and the relevant departments take prompt actions according to the instructions from management.
In the case of an emergency, necessary measures are taken in accordance with the directions given by the Risk Management Group.