Business Continuity Management

NXP takes ongoing actions to avoid business interruptions that may affect our team members, customers, suppliers, communities, investors, or other stakeholders. We also prepare for potential interruptions, so as to avoid or minimize their impact, and so we can ensure continued business operations.

Governance

The Corporate and Site Business Continuity Teams consist of representatives from various business functions and organizations. Teams identify potential risks that can have a major impact on product availability, supplies (such as wafers, chemicals, and gases), structures, manufacturing tool-sets, facility systems, and utility infrastructure. The teams are also responsible for strategic, tactical, and operational decisions while implementing their specific business-continuity plans.

Approach

The Corporate Team includes executive-level representatives who receive reports from individual Site Teams with specific business-resumption activities.

During an event, all groups interact with each other and, if necessary, escalate issues to the Corporate Team for additional assistance.

When assessing how an event may impact the business, we focus on likelihood, impact and recovery time. Each attribute receives a numerical score, either assigned by Business Continuity Team members, or from insurance risk analytics, including natural-hazard events. Assessments are reviewed at least annually. Each Site Team defines, executes and measures the results of risk-mitigation actions in order to reduce the likelihood and/or impact of identified potential events.

Training and Testing

  • Training

    Teams conduct regular training and testing/drills. This builds awareness and spreads knowledge about how to handle disruptive events. Training covers key roles and responsibilities, crisis-management protocols and how to handle site-specific scenarios.

  • Testing

    Our sites conduct drills, at least annually, to test the effectiveness of the continuity plan for a wide range of potential disruptions. This includes disruptions caused by events such as equipment failures, externally provided products, processes and services, natural disasters, fires, utility interruptions, labor shortages and IT issues and cyber-attacks.

Notification

We utilize multiple internal and external alert systems to notify us if there are incidents at or near our sites so responses can begin quickly at the local, regional or global level. We also use a geographic information system that includes the latitudes and longitudes of our suppliers so we can identify incidents that may affect them.

Teams are notified whenever events happen, and this immediately triggers an assessment and action-planning process. If the event may impact our supply or business continuity, we take immediate mitigation actions. Proactive and timely communication with our customers is a key part of this process.