Corporate Governance

Capital Services (Capital) has made a heavy investment into its local and regional corporate governance and risk management infrastructure. On a regional level, Capital has an established Risk Management Committee, which identifies risk and recommends mitigation action across all business and operational areas, and an Internal Audit function, which monitors and reports on internal control processes across the region. In Japan, a control framework based on the COSO model is used as a basis for performing risk assessment. In addition, Capital also has strong legal and compliance functions which minimize risks regarding compliance with related laws and legal ethics.

The three main entities which comprise Capital’s internal control infrastructure are as follows:

Risk Management Committee (RMC)

A Group-wide body composed of senior executives which performs an annual risk assessment to identify, prioritize, and analyze risks which could potentially have a significant adverse impact on the operations of the company. The RMC then formulates and initiates mitigation strategies against such risks, and continually assesses the effectiveness of these strategies.

Internal Audit

Quarterly internal control audits are conducted with semi-annual reporting. Entirely independent from Capital’s operations departments, the Internal Audit function has access to all premises, documents, systems and records, and mitigates against fraud risk.

Compliance Committee and its sub-committees (Japan-specific)

Dedicated to finding solutions for any issues regarding laws and business ethics, and to ensure that internal policies & procedures adequately outline the duties and responsibilities of all Capital employees. It also oversees sub-committees established to ensure the protection of all stakeholders’ personal information, and for mitigating against the risk of data leaks, as well to monitor the administration of books and records as required by Japan’s Ministry of Justice.