The Company has established the Yokogawa Group Internal Control System to ensure the reliability of financial statements and the validity of the decision-making process. As systems that ensure that directors comply with laws, ordinances, and the Articles of Incorporation of the Company, as well as a system required by a Ministry of Justice ordinance that ensures the appropriateness of corporate operations and the operations of the corporate group comprising the Company and its subsidiaries, the Company has internal control system to ensure proper and efficient execution of the Group's operations in place.
Moreover, as a part of the system to ensure the effectiveness of audits by Audit & Supervisory Board members, the Audit & Supervisory Board has now entered into an advisory agreement with attorneys.
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.
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 which include supplementary Anti-bribery Guidelines 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.