Innovation & Power of brand Year 2 Power 88 Performance Corporate Data Corporate Governance 39 NISSAN Annual Report 2012 Maintaining Trust Through Transparency Response to suppliers’ financial risk 4) Supply Chain Continuity Control was enhanced as follows to prepare for increased supplier risk. (1) Ensuring business continuity In fiscal 2011, cooperation with suppliers was an essential factor in the recovery from natural disasters  like the Great East Japan Earthquake and the floods in Thailand. The fruits of such efforts included  support for affected suppliers and early restart of production. Some of the major initiatives are as  follows: (2) BCPs for overseas operations In fiscal 2012, Nissan plans to introduce measures taken in Japan to overseas operations besides  Thailand and to establish similar BCPs for those regions. Nissan manages hazard risk on a global basis with risk financing techniques that combine self- retained risk with external risk transfer via insurance.  In order to minimize the cost of risk, Nissan adheres to the following global insurance management  policy. This policy has provided appropriate coverage for damage resulting from the unpredictable and  massive disasters that the world has seen in recent years. In order to minimize the cost of hazard risks and manage risks occurring globally and interdependently  in a concentrated manner, global insurance programs have been established for main lines of  insurance. The Finance Department in the Global Headquarters decides insurance conditions and  structures, and negotiates directly with insurance companies for these global programs. The insurance  companies are important strategic partners, and they are thus decided in consideration of risk spread  and financial solvency. The following risks are covered in this way. We achieved further improvement and optimization of insurance conditions by negotiating with  insurance companies together with our Alliance partner Renault from fiscal 2011. Global Insurance Program Global Insurance Management Policy Response to suppliers’ disaster risk 5) Risk Financing and Loss Prevention (1) Risk assessment (annual) • Work with Alliance partner Renault to conduct financial assessments of suppliers based on the  latest data on a global basis. (2) Prompt decision on risk aversion • Prompt decision making by a cross functional committee based on risk assessment findings • Thoroughgoing monthly management of risks for each supplier and anticipated expenditures • Steady implementation of the above operational process • Sharing of information relating to production recovery with suppliers frequently and from an early stage • Soliciting of feedback from suppliers in advance of the rolling blackouts and weekend operations  during the summer period, enabling the provision of support for power shortages as necessary • Establishment of a BCP for the supply chain (for both Japan and Thailand). • Predictable risks with low impact and high frequency → Retained risks up to an acceptable level on a consolidated basis by the company • Unpredictable risks with low frequency and high impact or shock value → Risks whose financial impact may exceed the acceptable level of self-retention are  transferred outside the company via insurance • Property damage and business interruption by accidents The program covers risks not only for property damage but also for business interruption and  contingent business interruption due to accidents, taking into consideration the global expansion  of the supply chain for products and parts. Coverage limits are determined based on the probable  maximum loss amount measured by third-party experts.