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.
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 specific significant risks which shall be managed preferentially as
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 risk management as the chairperson of 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 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 during times of crisis at all Group companies, and works to ensure safety and minimize economic losses. The Group's policies on the handling and protection of confidential information are set forth in the Confidentiality Code.
Yokogawa has set forth its basic compliance policies in the Standards of Business Conduct for the Yokogawa Group, and directors take the lead in working to see that business ethics are upheld and embraced throughout the Group.
We have established the Standards of Business Conduct as a set of guidelines for business conduct. Detailed rules of conduct are listed in the Basic Principles of the Yokogawa Group, Basic Attitude of the Yokogawa Group and Guidelines of Conduct for Yokogawa Group Members. 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.