Casio 2010 Annual Report Download - page 15

Improving the Internal Control System
Risk Management
Based on our corporate creed of “Creativity and Contribution,”
Casio has established a basic policy for internal controls to ensure
reliable and accurate financial reporting. It has also set up an
Internal Control Committee to implement controls, comprising
members of the Company’s Accounting Department, Information
System Department, CSR Operations Section and Internal Audit
Department.
In fiscal 2009, the Company created a self-monitoring structure
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.
Fiscal 2010 was the second year after entry into effect of the
internal control reporting system under the Financial Instruments
and Exchange Law. For this reason, we have introduced our
Operation Responsibility System, to strengthen monitoring
mechanisms compared with fiscal 2009.
Based on a policy set by the Internal Control Committee,
persons responsible for control systems appointed by each Group
company and department ensure appropriate conduct of opera-
tions over time in major operations, and carry out periodic checks.
If they discover any flaw or inefficiency, they propose and imple-
ment remedial measures, keeping the Internal Control Committee
informed through reports as needed.
From fiscal 2011, in anticipation of the systematic adoption
of International Financial Reporting Standards in Japan five years
from now, we are taking Groupwide measures to strengthen our
financial position and further raise internal control standards.
In line with our Basic Risk Management Policy, we have created
a system to systematically and efficiently manage risk across the
whole Company. A Chief Risk Management Officer appointed by
the CSR Committee to serve as chairman of the Risk Management
Committee selects, reviews and decides on risk management
issues that need to be addressed.
Issues identified by the Risk Management Committee are
handled by the main risk management departments, which take
action as needed at the level of the department or Group com-
pany involved, ensuring measures are fully understood Groupwide
and providing guidance. The Risk Management Committee
Secretariat oversees risk management at all stages of the manage-
ment process, utilizing the PDCA management cycle, and holds
meetings and manages progress in risk management activities.
The Internal Audit Department’s audits into management
systems are conducted independently from the risk management
activities of the Company.
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 2010