Delay in Establishing Internal Controls in Response to Rapid Business Expansion
First written in FY2017. 3 of 8 entries say "Restated". Latest entry: FY2026.
No.1 moved to the "Worse" side of this theme in 2026, the same year as the typical company in this theme.
6 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As the number of subsidiaries has increased, the Group's business has expanded rapidly, and the Group recognises the appropriate establishment, development and operation of group-wide internal controls as a management issue.」
As the Group expands to a structure comprising 14 companies, it continues to explicitly identify the development, establishment and operation of internal controls accompanying the increase in subsidiaries as a management issue. - FY2024MitigatedAnnual report
「The boards of directors of the subsidiaries also conduct quarterly monitoring of risk assessments and the status of responses.」
The subsidiary boards of directors conduct quarterly monitoring of risk assessments and the status of responses, providing specific detail on the operation of group-wide internal controls. - FY2022MitigatedAnnual report
「For the former, the Group deliberates on various issues relating to group management, including concurrent service by parent company officers as subsidiary officers, the provision of personnel to address staffing shortages, and the Group Strategy Meeting. For the latter, the Group works to appropriately establish and operate its group-wide internal control system through regular monitoring by the Risk and Compliance Committee of the status of the development and operation of systems to ensure the appropriateness of operations and the reliability of financial reporting across the Group.」
Provides specific measures to address delays in establishing internal controls through concurrent service by subsidiary officers, the provision of personnel, the Group Strategy Meeting and regular monitoring by the Risk and Compliance Committee. - FY2021WorsenedAnnual report
「The business has expanded rapidly through the integration of 株式会社アレクソン and 株式会社No．１デジタルソリューション into the Group, and the Group recognises group-wide internal control as a new management issue.」
Explicitly states that the business expanded rapidly through the integration of 2 companies and that group-wide internal control became a new management issue. - FY2020RestatedAnnual report
「However, if, due to rapid business expansion, the Group is unable to establish adequate internal controls in time, it may become difficult to operate the business appropriately, which could affect the Group's business, operating results and financial position.」
Reiterates the risk of delays in establishing internal controls accompanying rapid business expansion. - FY2019RestatedAnnual report
「However, if, due to rapid business expansion, the Group is unable to establish adequate internal controls in time, it may become difficult to operate the business appropriately, which could affect the Group's business, operating results and financial position.」
Reiterates the risk of delays in establishing internal controls accompanying rapid business expansion. - FY2018RestatedAnnual report
「However, if, due to rapid business expansion, the Group is unable to establish adequate internal controls in time, it may become difficult to operate the business appropriately, which could affect the Group's business, operating results and financial position.」
Reiterates the risk of delays in establishing internal controls accompanying rapid business expansion. - FY2017First statedAnnual report
「If, due to rapid business expansion, the Group is unable to establish adequate internal controls in time, it may become difficult to operate the business appropriately, which could affect the Group's business, operating results and financial position.」
While stating that it will strengthen its internal control framework, explicitly identifies delays in developing controls accompanying growth as a risk.