We take prudent actions to prevent and prepare for issues that may threaten the welfare of our team members, our customers, our communities and our investors.
Business Resilience Teams are established at the global and local levels to anticipate and prevent issues, develop proactive plans and systems and continuously improve our operations. In the event of a major issue, local and/or global Crisis Management Teams are activated, as needed. NXP is committed to providing timely and accurate information to affected stakeholders.
We cultivate a resilient culture through a Management System that is inclusive of all NXP businesses, activities and manufacturing sites and is modeled on the International Organization for Standardization's ISO 22301 and ISO 22316, as well as the International Automotive Task Force's IATF 16949 Section 6.1.2.3. For a detailed overview of NXP's Business Resilience Program, see our Global Business Resilience and Crisis Management Overview .
The global and local Business Resilience Teams consist of representatives from various business functions and organizations. These Teams focus on driving collaboration, alignment and resilience expertise across functions, levels and locations, so we can accelerate NXP's ability to thrive and grow stronger. The primary mission for these Teams is to maximize opportunities and minimize risks. The Teams are also responsible for strategic, tactical and operational decisions while implementing their specific business-resilience plans.
Global and local Crisis Management Teams also consist of representatives from various business functions and organizations, as needed. These teams focus on responding to issues with the potential for very high risk. The executive-level Steering Committee receives reports on resilience and crisis situations and provides strategic and tactical direction. During a situation, all groups interact with each other and, if necessary, escalate issues to the global and executive teams for additional assistance.
When assessing how a situation may positively or negatively affect the business, we focus on likelihood and impact. Each attribute receives a numerical score, assigned by Business Resilience or Crisis Team members, or from insurance or other external analytics. Assessments are reviewed at least annually. Each Team defines, executes and measures the results of action plans in order to minimize the risk or maximize the opportunity.
Teams document resilience and crisis plans, including regular training and exercises. The plans build awareness and spread knowledgeabout how to handle risks and opportunities. Training covers key roles and responsibilities, action protocols and how to handle site-specific scenarios.
We conduct risk exercises, at least annually, to test the effectiveness of plans for a wide range of potential disruptions. This includesdisruptions caused by events such as equipment failures, externally provided products, processes and services, natural disasters, fires,utilities, labor shortages and IT issues and cyber-attacks.
We utilize multiple internal and external alert systems to notify us if there are incidents at or near our sites so responses can beginquickly at the local, regional or global level. We also use a geographic information system that includes the latitudes and longitudes ofour suppliers so we can identify incidents that may affect them.
We conduct risk exercises, at least annually, to test the effectiveness of plans for a wide range of potential disruptions. This includesdisruptions caused by events such as equipment failures, externally provided products, processes and services, natural disasters, fires,utilities, labor shortages and IT issues and cyber-attacks.