Epson 2013 Annual Report Download - page 35

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(8) The president of Seiko Epson periodically reports important compliance-related matters to the board
of directors and takes measures as needed to respond to issues.
(9) Epson's "Principles of Corporate Behavior" states that the Company will have no association
whatsoever with antisocial forces. The Company takes a firm stance in rejecting any and all contact
with antisocial forces that threaten social order and security.
Business execution system
(1) Epson is instituting a system that will ensure the appropriate and efficient execution of business. To
that end, Epson has established regulations governing organization management, job authorities, the
division of labor, and the management of affiliated companies while distributing power and authority
across the entire Group.
(2) Executive officers are required to report the matters below at least once every three months to the
board of directors.
• Current business performance and performance outlook
• Risk management responses
• Status of key business operations
Risk management
(1) Epson has established regulations that form the basis of its risk management system and has defined
the organization, procedures, and other key elements of this system.
(2) Overall responsibility for risk management resides with the president of Seiko Epson. The chief
operating officers of operations divisions promote risk management within their respective businesses
and at subsidiaries consolidated under them. Group-wide risk management projects are carried out by
Head Office supervisory departments with the cooperation of departments in the various operations
divisions. In addition, a department was set up to supervise risk management. This department strives
to mitigate risk through monitoring and supervision of the overall risk management program.
(3) The Management Strategy Council strives to ensure effective management of serious risks that could
have an egregious affect on society by dynamically and exhaustively discussing and analyzing action
to identify and control risks. Also, 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.
(4) The president periodically reports to the board of directors on critical risk management issues and
formulates appropriate measures to respond to these issues.
Ensuring the appropriateness of operations in the corporate group
(1) The Epson Group's management structure helps ensure that operations in the corporate group,
including subsidiaries, are conducted appropriately. Essentially, the Company is organized into
product-based divisions. Each division is headed by a chief operating officer who owns global
consolidated responsibility for that business. Meanwhile, supervisory functions within the Head Office
own global responsibility. Responsibility for providing the framework for business operations at
subsidiaries is owned by the head of each business. Group-wide corporate functions are the
responsibility of the heads of Head Office supervisory departments.
(2) The Company has business processes that enable business to be controlled on a Group level. This is
accomplished by internal regulations that require subsidiaries to report or acquire pre-approval for
certain business operations from the parent company, Seiko Epson, and by requiring issues that meet
certain criteria to be submitted to Epson's board of directors for resolution.
Safeguarding and management of work-related information
(1) Information on business operations is safeguarded and managed under regulations governing, among
other things, document control, management approval, and contracts, with directors and statutory
auditors reviewing these and other relevant documents on an ongoing basis.
(2) The Company strives to prevent the leak and loss of Epson Group internal information by managing
confidential information according to the level of sensitivity, in accordance with internal information
security regulations.