Internal Control Systems
Yokogawa has established and is operating an internal control system to promote management efficiency while ensuring the appropriateness of business operations, and to achieve continuous growth and increase corporate value. The Group Management Standards were established as the most important regulations within Yokogawa Group, clarifying the roles and responsibilities of each business process, and implementing an internal control system based on autonomous control activities. Among the internal control systems, processes that are particularly important from the perspective of operational appropriateness are consolidated into a deployment system consisting of business ethics, decision-making, operations management, crisis management, and corporate auditing infrastructure. The system of overall responsibility for the Group has been established and is being operated. The person with overall responsibility for each process is tasked with managing, operating, and auditing the process, and works to ensure (i.e., maintain and improve) the effectiveness and efficiency of internal controls at each Group company. In operating the internal control system, clear action plans are formulated and PDCA is followed.
The department in charge of internal audits conducts an internal audit of the effectiveness of the internal control system and reports important matters to the Board of Directors and the Audit Committee.
Risk Management
The Risk Management Policy has been set forth for the purpose of establishing a basis for the effective and efficient conduct of enterprise risk management by the Yokogawa Group. Based on this policy, the Risk Management Committee shall decide the significant risks which shall be managed preferentially as the Yokogawa Group and decide the monitoring method for its risks and report them to the Board of Directors. The president shall be responsible for supervising all matters in relation to the risk management as the chairperson of the Risk Management Committee. Respective organizational units of the Yokogawa Group shall perform the identification and assessment of risks followed by the preparation and implementation of the countermeasures against risks. The department in charge of internal audit shall evaluate the effectiveness of the Yokogawa Group risk management process and reports important findings to the Board of Directors and the Audit & Supervisory Board members.
Crisis situations are to be responded to as set forth in the Group Policy for Crisis Management. As the head of the Crisis Management Committee, the president controls the communication of information and issuance of instructions in the event that the Group is in a crisis, and works to ensure safety and minimize economic losses.
As for information security, the 'Group Information Security Management Code' clarifies the structure, responsibilities and authorities of the YOKOGAWA Group's information security management. In addition, the ' Rules for Information Security Management ' provides for the protection and handling of confidential information in the possession of the YOKOGAWA Group.
Compliance
Yokogawa has set forth its basic compliance policies in the Yokogawa Group Code of Conduct and directors take the lead in working to see that business ethics are upheld and embraced throughout the Group.
The Yokogawa Group Code of Conduct is a set of guidelines for business conduct and consists of the Basic Policy and the Standards of Conduct. In addition, the Yokogawa Group Compliance Guidelines and the Yokogawa Group Anti-bribery and Anti-corruption Code set out how employees should respond to a variety of issues encountered on the job.
Moreover, we have established a department in charge of business ethics that is charged with the identification and resolution of issues pertaining to the compliance system. The Company is strongly promoting compliance management. It aims to be healthy and open, with both a culture that encourages and enforces proper ethical conduct and a system for preventing misconduct and scandals before they occur. In so doing, we will meet the expectations of investors and other stakeholders.
Our activities on Internal Control Systems, Risk Management, and Compliance are presented in the Yokogawa Sustainability Report.
