Casio 2009 Annual Report Download - page 17

Improving the Internal Control System
Casio has created an internal control system for financial reporting in response to the mandatory requirements under the Financial
Instruments and Exchange Law, which went into effect in the reporting term (ended March 2009). The Company has established a
basic policy for an internal control system to ensure reliable and accurate financial reporting. We have also formed the Internal Control
Committee, comprising members of the Company’s Accounting Department, Information System Department, CSR Operations Section
and Internal Audit Department. This committee is responsible for implementing internal controls.
In fiscal 2008, the Company created a monitoring structure and devised rules to govern the operational processes of the main
departments and group companies, to allow for the early detection of any risk that might have an impact on financial reporting. In each
department, individuals are required to conduct self-audits to ensure that their duties are being performed in accordance with the items
indicated on a printed check list. The results of these audits are reported periodically to the Internal Control Committee.
In addition, an independent Internal Audit Department conducts evaluations of the status of internal control systems and assesses the
effectiveness of their implementation in accordance with groupwide evaluation standards.
Through the abovementioned activities, checks are conducted to ensure that all business operations are conducted in conformity with
the aforementioned rules. If discrepancies or inefficient procedures are discovered, the Internal Control Committee formulates remedial
measures and implements plans as needed to ensure that the necessary changes are made in line with its basic policy.
Risk Management
At Casio, we have drafted a Basic Risk Management Policy and have created a system to systematically and efficiently monitor risk man-
agement across the whole Company. A Risk Management Committee has been set up under the CSR Committee, with the Chief Risk
Management Officer serving as the committee’s chairman. The Risk Management Committee makes decisions regarding the selection of
risk management-related topics and the implementation of risk management measures. Each department handling staff-level functions,
responsible for overseeing risk management at subordinate departments and group companies, takes the initiative in implementing
measures on risk management themes, and makes sure that these measures are widely known groupwide. The Risk Management
Committee Secretariat oversees risk management at all stages of the management process, utilizing the PDCA management cycle. The
Internal Audit Department monitors this system independently of risk management activities.
Risk management system
Internal Audit Department
CSR Committee
Chief Risk Management Officer
Risk Management Committee
Staff function departmentsMain risk management departments
Casio Computer Co., Ltd., Group companiesRisk management departments
Risk Management Committee Secretariat
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Annual Report 2009