At Yokogawa, "internal control" is a management process in which business resources, such as human resources, financial resources, and other tangible or intangible assets, are allocated appropriately and used effectively to increase the corporate value.
We have a system for an effective internal control in place to improve management efficiency and ensure compliant operations. Groupwide rules have been established and responsible units have been designated for each of the following systems: business ethics, decision making, operations management, crisis management, and corporate auditing infrastructure. The persons responsible for each of the systems have system auditing functions, and work to ensure (maintain and improve) the effectiveness and efficiency of the systems of all Group companies. Important matters are reported to the Board of Directors and the Audit & Supervisory Board members. In each internal control system, the relevant key result indicators and action indicators are clearly defined and the PDCA cycle is applied according to the evaluations of the respective indicators achievement levels. In accordance with the Yokogawa Group Management Internal Audit Code, the department in charge of internal audits shall audit the effectiveness of the internal control system.
Yokogawa implements the internal control system to ensure the appropriateness of its business activities and expand the corporate value of the entire Group.