Corporate Governance System
Riken Group's management system consists of Board of Directors and the Audit and Supervisory Board. In addition, we have introduced Executive Officers System in order to separate the functions of decision-making and supervision of operations from the execution of operations.
The Board of Directors of Riken Group is comprised of nine members (two of them are external directors), as of June 22, 2017. The Board of Directors is held once a month periodically and extraordinary meetings are held as needed. It makes legal and appropriate decisions upon issues stipulated by the law and internal regulations and issues of importance to management, and monitors the execution of operations. Further, we have shortened the term of office of the directors from two years to one year, which enables us to take swift actions in a rapidly changing business environment, as well as to clarify the responsibilities of the management.
Also, the Management Meeting, comprised mainly by executive officers, is held twice a month for discussing the managerial issues and controlling the daily operations, based on the basic principles decided by the Board of Directors.
The Audit and Supervisory Board consists of three members (two of them are external auditors), as of June 22, 2017. According to the audit policy, each auditor supervises the directors' execution of their duties by attending the Board of Directors and by conducting interviews.
To ensure accurate accounting, we are audited by Ernst & Young ShinNihon LLC.
We established the CSR Committee, which functions as a subordinate body to the Management Meeting, to promote the activities relevant to CSR.
The CSR Committee proposes policy with regard to CSR and promotes CSR in a number of ways, including promoting compliance activities and risk management and controlling the information disclosure. We have also established the Compliance Committee, in order to promote activities that enhance compliance.
In addition, we established the Risk Management Committee and Business Continuity Management Committee as a subordinate body to the CSR Committee in order to entrench and implement the risk management system and our business continuity plan. By assuming various kinds of risks and preparing the countermeasures, we will minimize the losses and risks.