3.Rules and other systems for risk management
1)NEC shall implement risk management systems effectively and comprehensively under the consistent policy throughout NEC Group in accordance with the Basic Rules on Risk Management.
(2)Business divisions shall endeavor to identify risks related to their assignment, select risks against which they should introduce control measures on a priority basis, decide on concrete risk control policies and measures, and properly conduct risk controls.
(3)Corporate staff divisions shall endeavor to identify risks related to their assignment, select risks against which they should introduce control measures on a priority basis, decide on concrete risk control policies and measures, properly conduct risk controls, and furthermore give corporate-wide support to risk control activities conducted by business divisions related to such assignment.
(4)Business divisions and corporate staff divisions shall sort out risks which disturb the proper and effective operations of their own divisions, and properly conduct risk controls.
(5)Internal Control Division shall provide necessary support, coordination and instructions so that risk management systems at business divisions and corporate staff divisions shall be systematically and effectively implemented.
(6)Risk Control and Compliance Committee shall deliberate on important matters related to risk management, and oversee the implementation of NEC Group's enterprise risk management system.
(7)Executive Committee shall deliberate fully on the matters of importance from a perspective of risk management, such as the strategy to control important management risk, and the matters of particular importance shall be reported to the Board of Directors.
(8)Business divisions and corporate staff divisions shall, when they recognize presence of serious risks or any sign of emergence of serious risks related to NEC Group's business, promptly report the situation to the corporate staff divisions concerned and the Internal Control Division, and, if the risks are of particular seriousness, report them to directors and corporate auditors.
(9)The Corporate Auditing Bureau shall, through cooperation with internal auditing sections of subsidiaries, conduct audits of NEC Group's enterprise risk management system and the status of implementation of risk management.