LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone, everywhere.
LIXIL Group builds, operates, and evaluates internal control systems to ensure the reliability of operations as well as the accuracy and appropriateness of financial reporting in order to increase corporate value. In addition, we are strengthening our Group-wide operational management system with risk-consciousness and building a system that complies with laws and regulations as a Group that emphasizes compliance management.
LIXIL Group ensures the continuity and stable development of 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 controlled through crisis management as part of ERM.
Risks to the Group’s Medium-Term Plan are identified and assessed, then prioritized as material risks for focused management. A risk owner is assigned to each risk and is responsible for responding to and reporting on the assigned risks.
LIXIL Group aims to take both a top-down and bottom-up approach in risk management in order to respond to various risks. While the HQ management is actively involved in managing Group-wide material risks, efficient coordination with regional / local operations is sought by placing risk managers at major overseas regions.
LIXIL Group is working to foster a corporate culture of Group ERM that enables executive officers and employees to have a consistent mindset in managing risks with the understanding of the business characteristics of each region.
In order to prepare for crises, a crisis management framework has been established for the entire LIXIL Group. The Crisis Management Basic Policy has been created to stipulate such matters as basic principles, definitions, and structures related to crisis management, and has been thoroughly implemented in the Group companies. A Group-wide response framework has been clarified and a crisis management handbook has been created and distributed so that when an incident may possibly develop into a crisis, damages and losses will be minimized through prompt initial response, timely escalation and sharing of information among relevant departments for management decision-making, and proper external disclosure done consistently and sincerely.
Understanding the importance of cybersecurity, LIXIL Group 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 Group 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 Group, 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.