Risk of internal control failure
First written in FY2016. 2 of 3 entries say "Worsened", first in FY2019. Latest entry: FY2025.
Olympus moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2023: 2 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「In light of the CEO’s resignation in the fiscal year ended March 2025, we will revise our Global Code of Conduct and related training to clarify that we must comply with our Code of Conduct, policies and all applicable laws and regulations.」
In light of the CEO’s resignation, a policy was presented to revise the Global Code of Conduct and related training as an internal control and compliance measure. - FY2019WorsenedAnnual report
「If such events cannot be addressed appropriately, issues such as violations of laws and regulations may arise in the future. In that event, the payment of administrative fines, criminal fines and damages awarded in civil litigation may be required, and the resulting loss of public trust may adversely affect the business, potentially affecting our performance.」
The consequences of internal controls failing to function were described in greater detail, including administrative action, criminal penalties, civil damages and loss of public trust. - FY2016First statedAnnual report
「However effective an internal control system may be, it cannot be ruled out that the system may cease to function for various reasons, including actions based on malicious intent or gross negligence by employees or others, or changes in the business environment that were not anticipated when the system was established.」
Against the background of inappropriate financial reporting in the past, the limitations of internal controls are explicitly identified as a risk.