Mitsubishi 2011 Annual Report Download - page 26

Development of internal control systems
Based on the Basic Policy on the Establishment of Internal
Control Systems as passed by resolution of the Board of Direc-
tors, MMC is continually working to ensure compliance with
laws and regulations and to promote proper, effective business
execution in line with changes in the domestic and overseas
environments. In particular, to ensure the reliability of financial
reporting pursuant to the Financial Instruments and Exchange
Act MMC is implementing companywide measures under the
leadership of the Internal Control Promotion Committee.
Development of risk management framework
MMC is establishing infrastructure for companywide risk manage-
ment systems. MMC has appointed risk management officers to
each operational headquarters and office, and these risk manage-
ment officers rigorously strengthen risk countermeasures by con-
ducting repeated cycles of risk identification, evaluation, and devis-
ing and implementing countermeasures, and monitoring in each
unit. These officers conduct risk management cycles at each unit
every fiscal year, while at the same time identifying material risks at
the companywide level and reporting them to senior management.
In addition, to prepare for unforeseen contingencies MMC
has developed emergency contact systems that enable the
rapid communication of information to directors and other key
personnel, as well as a swift and accurate response.
Business continuity plans
Learning from its experience of the Great East Japan Earth-
quake, MMC has formulated business continuity plans (BCPs)
based on scenarios to respond to earthquakes, epidemics and
Internal Control Systems and Risk Management
By creating a companywide internal control system and risk management
structure, and through employee education systems, we are working to
ensure compliance with relevant laws and regulations, as well as
appropriate and stable operations management.
Hiizu Ichikawa
Executive Vice President (Representative Director), Corporate Planning & Finance
other natural disasters that have a significant impact on business.
MMC has built a system that can respond rapidly to emergencies
and continually conducts educational and training programs.
These initiatives also extend to influential supply chains. MMC,
striving to fulfill its corporate social responsibility, has set as
basic objectives of its BCP ensuring safety and minimizing
damage when a disaster occurs, continuing to supply products
and services in line with its corporate philosophy, and if business
activities have been stopped temporarily, restarting them quickly.
Data security management
The protection of data assets (information as well as informa-
tion systems, machines, media and equipment used to handle
that information) is vital to fulfilling MMC’s social responsibility
and earning the trust of stakeholders. MMC implements physi-
cal, technological, personnel and organizational measures to
improve data security management based on its information
security policy and internal rules that conform to ISO 27001.
Protection of personal information
Based on its Personal Information Protection Policy, MMC is
building a management framework to establish internal rules
regarding protection of personal information. MMC has also
assigned a person to manage personal information management
at each operational headquarters and department under the
direction of the Personal Information Officer. MMC educates
staff on the subject through ongoing e-learning seminars and
other programs, and strives to safeguard personal information.
Security trade control
From the viewpoint of maintaining international peace and
security, MMC sincerely believes in the importance of strict trade
controls to prevent the proliferation of weapons of mass destruc-
tion and the excessive accumulation of conventional weapons. To
ensure appropriate trade controls, MMC has established an Inter-
nal Security Trade Control Standard as a management regulation.
In accordance with the standard and to ensure compliance with
laws and regulations regarding security trade controls the
Supervisory Committee for Security Trade Control was established
under the direction of the president, who acts as Chief Security
Trade Control Officer. The legality of export transactions is guar-
anteed by a management system centered on the committee.
President
Internal Control Promotion Committee
Evaluation Team
Evaluation
Department
Evaluation
Department
Personnel in charge
Departments
(Develop
internal
controls)
Afliated
companies
(Develop
internal
controls)
Departments
(Develop
internal
controls)
Afliated
companies
(Develop
internal
controls)
Departments Afliated
companies Departments Afliated
companies
Personnel in charge
Compliance with the Financial Instruments
and Exchange Act
(Development and evaluation of
internal controls over nancial reporting)
Compliance with the Companies Act
(Development of systems in line
with basic policies)
Internal Control Promotion Framework
MITSUBISHI MOTORS CORPORATION
Annual Report 2011
24