The Internal Auditing Dept., as an independent organization responsible for monitoring business process, carries out auditing of and provides advice and training to all in-house organizations and group companies.
In order to further strengthen the corporate governance to aim for “sustainable and sound growth,” targeted at by the Denka Value-Up initiative, we have enhanced risk-based auditing of business and management through risk-based approach from fiscal 2018. We check the internal control status, such as risk management, compliance including in-house rules and policies as well as laws and regulations etc., asset management, and business operations within the Group to identify inherent risks and causes and evaluate the effectiveness and validity of each process.
In fiscal 2018, with the focus also on the status of various themes, such as the compliance, risk management and inventory unique to overseas operations, we worked to enhance the value of each organization, not only by urging audited companies for self-started improvement of findings and exercises for improvement, but also by sharing the findings and exercises for improvement with related departments within the company as necessary to look for solutions.
In addition, in our department, we have strengthened activities to discover and evaluate emerging new risks arising from the promotion of business process innovation in the Denka Value-Up initiative, and provide advice for mitigating them.