Governance

The Lincstech Group has established a basic policy for the creation of an internal control system in accordance with laws and regulations, aiming for a management structure that will continuously provide new value to customers, business partners, employees, shareholders, and other stakeholders.

Internal Control System

Basic Policy

• Establish a “Lincstech Group Code of Conduct” and cultivate a corporate culture in which the actions of all executives and employees conform to its fundamental principles.
• Create a system and set of rules to ensure that all executives and employees carry out their duties efficiently, appropriately and in compliance with applicable laws and regulations.
• Make risk management a top priority, establish an organization to consider risk countermeasures, and contribute to safe management on an ongoing basis.
• Make clear in the Code of Conduct and other regulations that there are to be no dealings with anti-social actors, and ensure that all executives and employees understand this policy.
• Establish an internal reporting contact that employees both inside and outside Japan can feel at ease to use to report concerns, and ensure that all executives and employees are aware of it. Furthermore, establish measures necessary to ensure that employees who report concerns will not be treated unfairly.
• Establish an internal audit department that is independent of the executive management in order to improve our grasp of the management functioning of our group.
• Establish a system in which auditors can conduct audits effectively, and cooperate with them enthusiastically.

Code of Conduct

Risk Management

Basic Policy

We define “risk” as anything which could interfere with the stable operation of our company. In order to ensure the safety of our employees and protect our company’s value and management resources, we have established a risk management system with a risk management committee at its center to conduct risk assessments (risk identification, analysis, and evaluation) and for each type of risk promote prevention and impact minimization.

Management System

We have created Risk Management Basic Rules which define the objective of risk management, responsibility of the directors and our risk management promotion system, and established a Risk Management Committee, chaired by the company president, to serve as the driving force behind our risk management efforts.
Founded on a robust support system, we promote the construction of risk management systems and execution of risk management activities at each of our group companies.

Activities and Promotion

In accordance with our Risk Management Basic Rules, we convene a quarterly risk management committee meeting in order to review the content and status of our risk management activities. Further, we conduct a risk assessment to identify “major risks” that could have a major impact on the continuity of our business, craft a Business Continuity Plan (BCP) to address these risks, and conduct regular training. We also conduct risk management education for all employees and share with all employees the importance of risk management. Risk assessment and risk management activities are reported annually to the board of directors and receive their approval.

Supplemental to ordinary risk management activities, we have defined Emergency Response Procedures in order to assess and provide timely and appropriate response in the event of natural disasters, accidents, crime, and other serious situations that could impact our business. In the event of an emergency situation, an Emergency Response Task Force will be immediately convened to minimize damage, ensure employee safety and mitigate losses, and coordinate rapid recovery and plan countermeasures.

Risk Assessment

We conduct regular risk assessment to identify, analyze, and craft responses to risks to our company’s stable operation. For each risk, we clarify the team with primary responsibility for its handling, and, in parallel with analysis of the risk’s causes, indices are constructed to quantify the size of the impact and frequency of occurrence, and evaluations are performed based on these indices. Additionally, responses and countermeasures for each risk are defined and evaluation of their effectiveness performed. For risks for which the response is inadequate, the team with primary responsibility is empowered to quickly take additional measures.

Furthermore, risks that pose a major threat to business continuity will be identified as “major risks”, and a Business Continuity Plan will be formulated to address them. The BCP will also be subject to regular review and always ready to enable a timely response.