Internal control

Internal Control System Basic Policy

The Company believes that the development and operation of an internal control system is an important management issue, and the Board of Directors has decided on the basic policy shown on the right to ensure the appropriateness, effectiveness, and efficiency of the operations of the Company and its subsidiaries (hereinafter referred to as the “Group”), to maintain and increase its corporate value, to earn the trust of the public and further expand the Group's functions, and to enhance business performance.
This policy applies to all officers and employees of the Company (including advisors, contracted employees, and loaned employees). It also applies, with the necessary changes having been made, to those who reside and work at the Company's offices based on outsourcing contracts or temporary staffing contracts.

• Systems to ensure that the execution of duties by Directors and employees complies with laws and regulations and the Articles of Incorporation
• Systems for the storage and management of information related to the execution of duties by Directors
• Rules and other systems concerning management of risk of loss
• Systems to ensure that Directors execute their duties efficiently
• Systems to ensure the appropriateness of business operations within the Group
• Systems to ensure the appropriateness of financial reporting
• Matters concerning employees who are to assist in the duties of Audit & Supervisory Board Members, and matters concerning the independence of such employees from Directors
• Systems for Directors and employees to report to Audit & Supervisory Board Members, and other systems for reporting to the said members
• Other systems to ensure that audits by Audit & Supervisory Board Members are conducted in an effective manner

Internal Control Promotion System

The Company has established the Risk Management Committee as an organization whose role is to review and confirm important matters related to internal control and risk management, and it holds periodic meetings for each of the following purposes.　The Risk Management Committee addresses important risks related to internal control under the Companies Act and the Financial Instruments and Exchange Act in an appropriate manner, and also makes suitable decisions on other important risks by gaining a comprehensive understanding of the risks facing the entire Company.