Internal Control Structure and System
Ryosan consistently strives to strengthen its internal control structure and system in efforts to take full responsibility for its behavior and actions on behalf of all stakeholders. The Company formulates fundamental policies based on the Companies Act and related enforcement regulations. At the same time, maximum efforts are made to establish a structure that will ensure relevant and fair business operations and to actively engage in managing the risks associated with the Company’s business operations in accordance with its sales and marketing, receivables, and inventory-related rules and regulations.
Internal Control Requirements as Related to Financial and Accounting Settlement and Reporting
Since 2008, in accordance with the Financial Instruments and Exchange Act, Ryosan has adopted internal control requirements as they relate to financial and accounting settlement and reporting. The Company complies with evaluation standards as applied to generally accepted internal control requirements relating to financial and accounting settlement and reporting, and conducts the necessary assessments to ensure efficacy.
Ryosan has formulated compliance-related rules associated with insider transactions, export transactions, subcontract transactions, and data security, and consistently strives to improve compliance in those areas.
Business continuity management
Ryosan has established a business continuity management system based on newly formulated disaster-prevention rules, which replaced the existing business continuity plan (BCP) following the Great East Japan Earthquake. Having finished establishing fundamental measures such as disaster-assistance logistics for emergency supplies and introduction of a safety confirmation system, the Company, going forward, will actively engage in enhancing onsite response capabilities by providing consistent training to employees.