Group-wide Compliance and Risk Management Framework

「As the first line, each division at headquarters considers risks when formulating various measures in the field and carries out risk management within its own division. As the second line, under the head of the Risk Management Office, who is responsible for risk management, the Risk Management Office, an organization independent of the business divisions, comprehensively identifies risks across the company and confirms the status of countermeasures twice a year, reporting to the Risk Management Committee. The Risk Management Committee, whose members include the president, vice presidents and CFO, and in which statutory auditors and the heads of relevant divisions participate, determines the significance of risks and the responsible persons, or risk owners, and issues instructions on countermeasures. The status is reported to the Board of Directors through the head of the Risk Management Office. As the third line, the Internal Audit Office audits the overall risk management framework and its status from an independent position separate from the first and second lines.」

「LINEヤフー㈱ has established a structure and is working to strengthen it so that data governance throughout the LINEヤフー㈱ Group operates smoothly and appropriately. These efforts will continue.」

「Through risk assessments conducted by divisions at headquarters and by subsidiaries and affiliated companies, as well as interviews with risk owners, the company identifies, selects, evaluates and reviews risks. Specifically, based on risks identified by the Risk Management Committee as having a material impact on the company and the results of risk reviews, risk owners consider and implement risk countermeasures.」

「The Group is working to understand the risks of its subsidiaries and affiliated companies by developing reporting systems, strengthening communications, and conducting risk assessments. However, if it is unable to prevent misconduct or other issues, this could affect the Group's business development, financial position and operating results through damage to its reputation and a decline in demand for its services, among other factors.」

「Under its Risk Management Regulations, the risk management division compiles the status of assessments and analyses of risks conducted by each division, along with the progress of countermeasures and responses, and regularly reports the results to the Risk Management Committee, whose members include representative directors and others. The Risk Management Committee determines the significance of risks and their owners, and seeks to reduce and prevent risks by reviewing and promoting the countermeasures formulated and implemented by risk owners. 」

「Under its management philosophy of "Making people happy through the information revolution," the Group has sought to maximize corporate value by aiming to become a corporate group that provides the services and technologies most needed by people around the world, while engaging in a range of businesses in the information and technology fields with its communications business as its foundation.」

「The Group views this matter as a serious incident because certain aspects of its security measures and explanations to users were inadequate, and is taking countermeasures. Going forward, the Group will work to strengthen governance across the Group regarding the appropriate handling of personal information.」

「The company established a CDO Office and appointed a Chief Data Officer (CDO), while developing policies and rules for managing and strategically using internal and external data and strengthening its internal management structure for handling the confidentiality of communications, personal information and other matters.」

「The company appointed a Chief Compliance Officer (CCO), who will formulate and implement measures necessary to establish and strengthen the company's compliance framework.」