Ricoh 2014 Annual Report Download - page 42

Ricoh Group Sustainability Report 201441
Report
results
Decision
Disclosure
of preventive
measures
Implementation
throughout
the Group
President and CEO
Management division
for each risk
Each division and afliate
Group Management
Committee
Internal Control
Committee
Proposal and
report
Advising,
monitoring and
training
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Issues reports to the Internal
Control Committee on
responses to risk
Assists the supervising
organization on risk
identication and response
from a Groupwide
perspective
Organizes educational and
awareness programs for all
directors and employees
Division Supporting
Risk Management
Roles
Develops a group risk
management action policy
and proposal to the Internal
Control Committee
Coordination of cross-
organizational risk
management and support
for executives
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Monitors responses to risk
throughout the Ricoh Group
The Ricoh Group aims for continuous improvement
based on the values embodied in The RICOH Way.
This includes operating an internal control system
designed to strengthen competitiveness while
maintaining transparency based on principles of
corporate ethics and legal compliance. Ricoh has
established the Ricoh Group Corporate Management
Principles as a set of guidelines for corporate
activities, and follows the Internal Control Principles
included therein.
The Ricoh Group established the Group
Management Committee (GMC) to oversee the
Group’s overall business operations and to enable
quick analysis and decision making from the
perspective of the best result for the Group as a
whole.
The Internal Control Committee was established
within the GMC to determine action policies, report
incidents, and evaluate and correct the control
system regarding internal controls, risk management
and compliance, in particular.
Corporate Management Regulations for Ricoh
Afliates stipulate the establishment of a supervising
organization to oversee risk at all Ricoh Group
companies.
Ricoh has established a set of common rules that
must be followed — the Ricoh Group Standards
(RGS) — and ensures adherence to these rules across
the Group.
Ricoh has developed a basic disclosure policy to
ensure that the corporate information it releases is
accurate, timely and comprehensive. We have also
set up the Disclosure Committee, anindependent
body charged with verifying the process, to prepare
the information to be disclosed.
Integrated internal audits (J-SOX* audit, nancial
audit, operational audit, etc.) are conducted to
ensure the reliability of our nancial reports, improve
operational efciency, conrm compliance with laws
and regulations, and conrm that risk management
measures are being implemented properly.
The Ricoh Group has deployed its own Fraud Risk
Management (FRM) program that includes a check
for fraud risk. We have adopted a check sheet and
use tools to detect anomalies within large volumes of
data in the integrated internal audit.
Total risk management (TRM) system
BasedontheRiskManagementPrinciplesstipulatedin
the Ricoh Group Corporate Management Principles,
the GMC/Internal Control Committee has established
a risk management area of responsibility for each
business risk and implemented thorough risk
management in daily execution and business
operations. In addition, the Group has established a
division supporting risk management, which provides
comprehensive support for executives, risk
management areas, and all divisions within the Group.
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Determining and reviewing managerial risks
The Group assigns a risk value based on frequency
and degree of impact for external risks such as
world trends, incidents and accidents, as well as
for internal risks such as changes in the business
structure, and creates a two-dimensional risk map
to dene managerial risks. This is reviewed annually
at the time the business plan is being created.
Major risks
The Ricoh Group pays particular attention to the
following types of risk to prevent incidents that may
have a major negative impact on corporate business
activities, and to minimize the damage in the event
that they do occur.
•Naturaldisasters•Seriousaccidents•Exchangerate
uctuations•Seriousqualityproblems•Difcultyinacquiring
rawmaterials•Leaksofpersonalinformationandcorporate
secrets•Bribery•Insidertrading•Violationofenvironmental
regulations•Violationofimport/exportregulations•Human
rightsissues•Fraudinrelationtobusinessoperations,etc.
➤ WEB
The Financial Instruments
andExchangeLawof
Japan requires listed
companies to disclose
their assessment of the
effectiveness of their
internal controls over
financial reporting. The
legislation is regarded as
the Japanese version of
theSarbanes–OxleyAct
(SOX), enacted in the
United States and it is
known as “J-SOX.”
Internal Controls Risk Management
• Risk management process
➤ WEBRisk management: www.ricoh.com/about/governance/risk.html
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