Crisis Management, Response to Scandals, and Compliance

The domain of crisis management and response to scandals is broad. With respect to prevention, a three-step sequence is followed. The first step is to discover any problems, the second step is to determine the causes, and the third step is to take remedial measures. In terms of the first step, however, before any problems come to the surface, there are a very large number of cases where problems are known and left unaddressed or where no progress is made in terms of moving to the next step because of a lack of understanding regarding what constitutes a problem, thereby enabling the problem to emerge and develop into a state in which it can no longer be resolved. For this reason, internal investigations have their own limits, and it is essential that the corporate compliance system be checked by an objective third party with experience in dealing with scandals. As regards the second step, namely the determination of causes, we see a great many cases where companies are too eager to seek profits to address compliance matters sufficiently. It is necessary to pay attention not to the superficial causes but to their own latent trait behind it, which is that of putting profits first. As far as the remedial measures in the third step are concerned, it is essential for the entire company, from the management executives to the employees, to realize that its pursuit of immediate profits will eventually cause substantial damage, and to build a check system to monitor its behaviors. It is unnecessary to refer to an example of account rigging.

We will carry out an investigation for discovering problems as a preventive action and provide specific and practical services, including the overall examination of internal rules, the sharing of perceptions with employees by means of training and other measures, and the enhancement of the internal control system, on the basis of our impressive experience in dealing with scandals according to clients’ sizes and needs. We will also offer advice regarding preparations during normal times, including the creation of a manual of actions to be taken in the event of the revelation of a scandal or other issue.

Where a scandal is revealed, we will proactively take action based on our wide-ranging experience, such as investigating the causes of problems, formulating recurrence-prevention measures and undertaking the process of responding to customers to resolve problems. We are also capable of independently delivering reports from an objective and impartial standpoint.