Casio 2011 Annual Report Download - page 13

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 operations over time
in major operations, and carry out periodic checks. If they discover any
flaw or inefficiency, they propose and implement 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 company involved, ensuring
measures are fully understood Groupwide and providing guidance. The
Risk Management Committee Secretariat oversees risk management at
all stages of the management 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 2011