Epson 2007 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2007 Epson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 89

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89

Overall responsibility for risk management resides
with the president, with heads of each business and
department responsible for the management of risk in
their respective consolidated businesses.
Under the president’s leadership, a forum has been
established wherein risk management-related issues
are discussed. When major risks become apparent, the
president leads the entire company in mounting a swift
initial response in line with Epson’s prescribed crisis
management program.
The president periodically reports to the board of
directors on risk management issues and formulates
appropriate measures to respond to these risks.
5. Audit System
Based on corporate regulations governing auditors and
audit procedures, statutory auditors have the authority to
conduct hearings with directors and other key personnel
whenever they deem such hearings necessary.
Statutory auditors are also authorized to attend
sessions of the Corporate Strategy Council, the
corporate management meeting and other important
business meetings. Attendance at these meetings
enables the auditors to conduct audits based on the
same information as directors. Statutory auditors also
routinely review important documents related to
management decision making.
Epson has established an Audit Staff Office with
specialized personnel to assist the statutory auditors in
their duties. The views of the board of statutory auditors
are given a great deal of weight in the evaluation and
transfer of personnel assigned to this office.
To improve the effectiveness of their audits, statutory
auditors consult on a regular basis with the internal
Audit Office and independent public accountants.
In addition, the holding of regularly scheduled
meetings with representative directors allows statutory
auditors to directly assess business operations.
29
Annual Report 2007
•Overall responsibility: President
•Mobilization of comprehensive
command structure when major
risks become apparent
•Initially define the seven different
kinds of crisis by type (crisis
management program)
1. Leakage of sensitiveinformation
(includingpersonalinformation)
2. Damage from natural disasters
3. Country risk
4. Criminalacts against the Company
5. Computersystemcrashes
6. Product liability/quality problems
7. Environmental accidents at plants
• Overall responsibility: President
• Implementation responsibility: Divisional and
departmental heads
• Identify in advance risks in business areas and
operational fields and take action to respond to them
Risk Management System
Risk Management Regulations
Trust-Based Management
Promotion Meeting Board of Directors
Crisis Management Committee Regulations
Routine Discussion/Reporting
Crisis Management
Program
Responses to Crises
Year ended March 31, 2007
Action taken to prevent the spread of a new type
of influenza at an overseas subsidiary
Crisis management during flooding in Nagano
Prefecture (July 2006)