【最終】AR2018

43/90

41LINTEC ANNUAL REPORT 2018FINANCIAL INFORMATIONESGSTRATEGYOVERVIEWrepresentative directors, and a final evaluation was received from outside directors, who are independent officers of the Company. In this final evaluation, outside directors stated that the survey questions and method were rational overall considering efforts to revise survey content each year and other matters. Their evaluation also confirmed that the approach of using a PDCA cycle* in which measures for the following year are examined based on survey responses was a reliable means of ensuring the effectiveness of the Board of Directors. Further, although replies from respective directors provided positive evaluations of the Board of Directors, there were recommendations and observations, including those regarding points for future improvement. Outside directors stated that such recommendations and observations provided a reference in pursuing the Board of Directors’ ideal state and requested the consideration of measures in light of the said recommendations and observations going forward. Based on this feedback, we will take steps to develop an environment that facilitates improved Board of Directors’ effectiveness.* PDCA cycle: This approach continuously improves processes through the repetition of a cycle of activities comprising four phases: namely plan, do, check, and act.• Director training policies(1)New director trainingAfter assuming their position, new directors are provided training from outside institutions to endow them with the legal, accounting, and other knowledge necessary to management.(2)Regular trainingOnce or twice a year, directors undergo training on contemporary issues from lawyers or other outside lecturers. These training sessions serve as opportunities to hone the sense of judgment that is crucial to members of the Board of Directors.(3)Special trainingWhen necessary, directors participate in seminars at the Company’s expense to acquire the specialized insight required to perform their duties.2. Internal Control SystemThe following is an explanation of the internal control system to ensure that the execution of directors’ duties is in compliance with laws and regulations as well as the Articles of Incorporation, and the system to ensure the appropriateness of the execution of other business.• System to ensure that the execution of the duties of directors and employees is in compliance with laws and regulations as well as the Articles of IncorporationTo ensure that the execution of the duties of directors and employees is in compliance with laws and regulations as well as the Articles of Incorporation and that a sense of ethics is maintained, the Company established its motto of “Sincerity and Creativity,” on which its Code of Conduct was based. To ensure the effectiveness of the compliance system with regard to laws and regulations as well as the Articles of Incorporation, the Audit Office—an organization under the president’s direct supervision—investigates and verifies, by means of audits based on the Internal Audit Regulations, whether all of the Company’s operations are being appropriately and reasonably imple-mented and pursuant to laws, the Articles of Incorporation, and internal rules and regulations. The results of those audits are regularly reported to the Board of Directors.• System for storing and managing information related to the execution of directors’ dutiesDocuments are stored and managed in accordance with rules determined for each document type, including those documents stipulated by law.• Regulations and other systems pertaining to management of risks of lossBy promoting the issue of manuals by division and facilitating their thorough use, the Company makes preemptive efforts to reduce or avoid risk. In the case of specific risks, the Company promotes reviews of and improvements to response measures as risks arise. For emergency situations, such as the occurrence of a disaster, the Company has established the Companywide Crisis Management regulations, in addition to a BCMS, which is based on these regula-tions. These are separate from risk management initiatives con-ducted through normal operations, and we strive to ensure that a crisis management organization can be quickly established in the event of an emergency.• System to ensure that the execution of the duties of directors is efficiently conductedIn addition to setting out the duties for which directors are responsible for and that correspond to the allocation of roles of each organization, based on the Regulations on the Division of Duties, the Company works to separate management from execution and accelerate decision making by the introduction of an executive officer system. Moreover, the Company reviews internal organizations as necessary to be able to respond to environmental changes and works to maintain efficiency in the execution of the duties of directors by such means as the setting up of cross-organizational committees on an as-required basis.• System to ensure the appropriateness of business in the corpo-rate group comprising the Company and its subsidiariesBased on the Affiliate Company Operational Regulations, the Company works to maintain the appropriateness of its operations as a group entity by having each of its principal business divisions control the operations of Group companies. Based on the Affiliate