Business Continuity Management

NXP prepares and plans for interruptions affecting all or part of the organization, so we can minimize the effects of potential incidents and ensure the ability to continue business operations.

Objectives
Governance
Approach
Due Diligence
Training and Testing
Notification

Management Plan

The Business Continuity Management Plan is modeled on the International Organization for Standardization's ISO 22301 and the International Automotive Task Force's IATF 16949 Section 6.1.2.3.

Objectives

Structure

Provide an effective, fit-for-purpose structure for responding to an incident, with predetermined roles and responsibilities.

Alternative Solutions

Identify and establish suitable alternatives for means of operation, supplier sources and other resources in response to disruptions.

Recovery

Expedite business recovery by identifying key business activities and other activities required for organizational survival or short-term recovery.

Communicate

Communicate effectively with key stakeholders, including team members, customers, suppliers, shareholders, media and regulators.

Train

Train team members and incorporate emergency drills and recovery procedures.

Governance

NXP's Business Continuity Management Office (BCMO) is the global coordinator for the Business Continuity Plan. The BCMO is responsible for providing guidance and standardization for development of the Business Continuity Plan, along with testing and maintaining a solution for centralized access to the plan. The BCMO provides periodic status reports to senior management.

Corporate Business Continuity Team (CBCT)

The CBCT is a cross-functional team of senior leaders from Technology and Operations, Supply Chain, Procurement, Human Resources, Finance, Legal, Communication and Public Affairs, IT, Site Services, Security, Quality, Sustainability and Environment, Health and Safety (EHS). The team manages the Corporate Business Continuity and Crisis Management programs. It also provides direction, guidance and support to all the other Corporate and local teams within the Business Continuity Management Organization.

Site Business Continuity Management Teams

The Site Business Continuity and Crisis Management Teams consists of representatives from various organizations at each site. The local team identifies potential risks that can have a major impact on structures, factory tool-set availability, facility systems and utility infrastructure, as well as regional risks, including natural hazards and other supply risks, such as wafers, chemicals and gases. The team is also responsible for strategic, tactical and operational decisions while implementing their specific business-continuity plans.

Approach

Our comprehensive approach to business continuity and risk management includes an executive-level team that receives reports from individual site teams with specific business-resumption activities.

During a crisis, all groups interact with each other and, if necessary, escalate issues to the Corporate Business Continuity Team.

Corporate Crisis Management and Business Continuity

Site Assets

Site, Utilities and Natural Hazards

Identify, execute and measure
Recover/restart crucial business processes
Business impact assessments
Likelihood impact and recovery time
Conduct training and drills

Product Supply Continuity

Product Delivery

Assess, decide and respond for material supply
Communicate potential interruptions

Procurement Continuity

Material Delivery

Identify, analyze and evaluate dual sourcing
Ensure product supply
Communicate potential interruptions

Protection of Information

IT Systems

Identify, and coordinate procedures
Initiate service restoration
Communicate

Training and Testing

Training

Our manufacturing sites and main design and office sites prepare for events using on-the-job training and/or site-developed trainings that cover key roles and how to handle site-specific scenarios.
Drills

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

Notification

Site-level and community-level emergency alerts notify us if there are chemical spills, fires, earthquakes, typhoons, floods, explosions and other events so responses can begin quickly, at the site, local and/or regional level. We also have a geographic information system that includes the latitudes and longitudes of the manufacturing locations of our various suppliers.

Teams receive emails whenever events happen, and this immediately triggers a due-diligence assessment and an action-planning process. We reach out to manufacturing sites and vendors in the proximity of an emergency, and if there may be an impact to our supply continuity, we take mitigation actions. Proactive and timely communication with our customers is part of this response.

We Want to Hear from You!

Contact NXP's Business Continuity team at bcm@nxp.com
Contact NXP's Sustainability team at csr@nxp.com