LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone, everywhere.
LIXIL and its group companies build, operate, and evaluate internal control systems to ensure the reliability of operations as well as the accuracy and appropriateness of financial reporting in order to enhance corporate value. In addition, we are strengthening our group-wide operational management system through risk awareness and, as a corporate group that emphasizes compliance management, building various systems that comply with laws and regulations.
The LIXIL group strives to stably and continuously develop its business through the implementation and operation of ERM for the entire group. Risks related to crises that require immediate response when they occur are also controlled through crisis management as part of ERM.
The LIXIL group promotes a system of managing risks whereby leaders identify risks to management targets and become a risk owner responsible for responding to each risk so that the system helps to nurture an entrepreneurial spirit. Their role is to analyze the risk and risk response from the perspective of its impact and likelihood, and then to share, report on, and respond to the risk. Risks are largely categorized into strategic risks and operational risks. For strategic risks, efforts are made to collaborate with various relevant departments to ensure the framework encompasses a wide range of perspectives. This includes medium- to long-term perspectives such as management policies, business strategies, and Corporate Responsibility Strategy, as well as the perspectives of stakeholders. The risk management system established for operational risks is autonomous, whereby each organization and region holds meetings or sets agendas regularly, or as necessary, to discuss and respond to risks, which they then report to headquarters.
The LIXIL group takes both a top-down and bottom-up approach to respond to various risks. Also, risk managers in major regions ensure efficient coordination among those at headquarters, regional operations, and local business operations. Through these kinds of coordinated activities and visualized risks, we aim to increase the risk awareness of LIXIL officers and employees, and establish and implement ERM where agile and appropriate decisions for risks to take or avoid can be made as part of strategy implementation. A further result of these activities is the internal and external disclosure of important group risks and countermeasures.
A crisis management framework has been established in each group company. Crisis management policies and a handbook have been created and distributed so that a swift initial response and escalation is possible when a crisis occurs. Also, frameworks are in place for crisis headquarters to be established whenever necessary at various levels within group companies such as at headquarters, departments, or at local business premises. Moreover, quick decision-making at the crisis management task force at headquarters is supported through, in addition to the risk management reporting during normal times, the establishment of the Issue Assessment Team (IAT) that enables timely communication of crisis information to management.
Understanding the importance of cybersecurity, the LIXIL group has established and operates the LIXIL Computer Security Incident Response Team (LIXIL-CSIRT) to minimize the impact of cyberattacks. We constantly monitor computers and networks to detect problems at an early stage and analyze the impact and cause of the problems in order to respond quickly.
Understanding the importance of cybersecurity, LIXIL has established and operates the LIXIL Computer Security Incident Response Team (LIXIL-CSIRT) to minimize impact from cyberattacks. We constantly monitor computers and networks to detect problems at an early stage and analyze the impact and cause of the problems in order to respond quickly.
LIXIL has established global principles on intellectual property (IP) management, expanding the coverage of our IP management structure to include overseas subsidiaries, to maximize the value generated from IP and minimize associated risks across the Group.
We aim to protect the fruit of our R&D activities from being imitated by competitors and differentiate our products, through effective protection and use of IP. We also share our IP assets with business partners as necessary for the purposes of creating high value-added markets for customers and strengthening our business relationships. We build, maintain and actively use the Group-wide IP portfolio, considering the strategies of each technology business, potential Group-wide synergies, and our long-term business strategy.
We manage our IP strategically across all Group companies, through regular meetings as well as day-to-day contacts among members of the Intellectual Property divisions at the headquarters and overseas subsidiaries, product development personnel in each technology business, and R&D personnel at the headquarters and major global Group companies.
At LIXIL, we protect our high-quality IP in order to differentiate our products and secure competitive advantage. We investigate whether the inventions and designs by our R&D divisions have 'prior art', and determine the value of applying for a business patent or design application, before making decisions on whether to license IP rights.
Any infringement of third-party IP rights on our part through our business activities could lead to legal action, resulting ultimately in the suspension of sales or compensation claims. To avoid such risks, we investigate thoroughly third-party IP rights before starting operations.
To ensure that the above mentioned activities are facilitated appropriately, we are actively enhancing the knowledge base and skill sets of employees involved in IP. We also provide IP trainings to managers and new hires.