Strengthening Governance through the Audit and Supervisory Committee, Internal Audit and Risk Management
First written in FY2018. 7 of 9 entries say "Advanced", first in FY2019-Q3. Latest entry: FY2025.
- FY2025AdvancedAnnual report
「The Company has established a Risk Management Committee chaired by the Representative Director and President and comprising other directors and executive officers responsible for business operations. The CRO (Chief Risk Officer), appointed by the Board of Directors, serves as vice chair and oversees the promotion of risk management. The committee meets once per quarter and held 4 meetings during the fiscal year.」
The Company established a Risk Management Committee with the CRO as vice chair and specified procedures for holding meetings once per quarter, 4 times a year, and reporting to the Board of Directors. - FY2024AdvancedAnnual report
「The Company reviewed its regulations for assessing individuals in the selection process for subsidiary directors and expanded and formalized the selection process by making background checks conducted by external investigation firms mandatory, among other measures.」
Following inappropriate conduct at a subsidiary, the Company specifically strengthened group governance through measures including background checks, director training, subsidiary risk analysis, a review of ordering authority, shared receipt of invoices and the establishment of a dedicated monitoring department. It also stated that the Central Internal Audit Office had a staff of 8. - FY2023AdvancedAnnual report
「As part of efforts to strengthen the audit infrastructure, the Company revised the Internal Audit Regulations to bring them into line with international standards and put the revised regulations into effect in May 2023.」
The Company conducted audits of all divisions and group companies through 3 members of the Internal Audit Office, submitted semiannual reports to the Board of Directors and quarterly reports to the Audit and Supervisory Committee, and revised and enacted the Internal Audit Regulations in May 2023. - FY2022AdvancedAnnual report
「The Company has established an Internal Audit Office reporting directly to the Representative Director and President. Its 3 members conduct internal audit activities in accordance with the Internal Audit Regulations, report the status of internal audits and other matters to the Audit and Supervisory Committee as needed, and coordinate with the accounting auditor.」
The Internal Audit Office continued its operations. During the fiscal year, 4 members of the office audited each division and group company and coordinated with the Audit and Supervisory Committee and the accounting auditor. The Risk Management Committee’s PDCA process and the Disclosure Committee were also put into concrete operation. - FY2021AdvancedAnnual report
「In September 2021, the Company established a Nomination and Compensation Committee as an advisory body to the Board of Directors and began rebuilding its director compensation and evaluation systems.」
The Company established a Nomination and Compensation Committee and began rebuilding its director compensation and evaluation systems. It also specified a structure in which 3 of the 5 committee members are outside directors and an outside director serves as chair. - FY2020AdvancedAnnual report
「The Company has established an Internal Audit Office reporting directly to the Representative Director and President. Two internal audit personnel conduct internal audits of the business operations of each division and subsidiary, collectively referred to below as the audited departments, in accordance with the Internal Audit Regulations, and report the results to the Representative Director and President and the Board of Directors.」
The Company specified each division and subsidiary as subject to internal audits and described procedures covering the submission of improvement plans and audits of improvement status after a specified period. The Audit and Supervisory Committee focuses its audits on compliance, risk management and internal controls. - FY2019-Q3AdvancedAnnual report
「At a Board of Directors meeting held on 18 July 2019, the Company resolved to appoint the director responsible for legal affairs and intellectual property as Chief Compliance Officer, establish a dedicated compliance department reporting directly to the officer, and systematically and effectively implement measures to prevent the recurrence of inappropriate transactions and accounting practices.」
The Company resolved to appoint a Chief Compliance Officer and establish a dedicated department. It also specified concrete control improvement measures, including increasing the staff of the Internal Audit Office, increasing the frequency of overseas audits, and strengthening the supervisory functions of the Board of Directors and the Audit and Supervisory Committee. - FY2019-Q2Internal control issues came to lightAnnual report
「In the amended internal control report submitted on 12 July 2019, the Company stated that the internal controls over financial reporting of the Company Group were not effective. The Company is currently working to improve and strengthen controls over monitoring of the Company Group’s sales transactions and the consolidated closing process.」
An amended report stated that internal controls over financial reporting were not effective under the existing governance structure, making the improvement and strengthening of sales transaction monitoring and the consolidated closing process key issues. - FY2018First statedAnnual report
「To strengthen the Board of Directors’ supervisory function and corporate governance, the Company transitioned to a company with an Audit and Supervisory Committee pursuant to a resolution adopted at the extraordinary general meeting of shareholders held on 24 March 2017.」
The Company has disclosed a governance structure that includes the transition to a company with an Audit and Supervisory Committee, 3 outside directors, an Internal Audit Office, a Compliance Committee and a Risk Management Committee.