Business Risk Management Activities

(1) Business Risk Management and Internal Control Concerning Financial Reporting
  In order to achieve management goals, Anritsu is reinforcing its internal control system based on the leading-edge framework of COSO ERM to convert constraints on growth, i.e. business risks, into business opportunities.
  An improvement of the internal control system is indispensable to understanding, in full detail, evaluation and management of business risks inside the company. Management in this regard revolves around three factors: reliability of financial reporting, legal observations and business efficiency. The Financial Services Agency of Japan requests that the company submits an Internal Control Report detailing advances in internal controls and independent auditing by March 2009. Hereafter, we will not only make financial reports reliable, but also disclose appropriate design systems so as to prevent mistakes in the process of producing the reports.

(2) Accelerating preparations of the Internal Control System
  Rules and procedures, according to internal controls, have determined business policies, job contents, authorization procedures and more. With Anritsu's establishment of the Internal Control Improvement Center, risks pertaining to these procedures will be screened out and control documents made accessible to outside stakeholders. Independent auditors and Anritsu will assess effectiveness of this internal control, ensuring objectivity and reliability of our financial reporting.
  In the process of evaluating current procedures, we are also continually improving productivity and legal compliance in order to reinforce overall internal control procedures.

Disaster Management Activities

  As Japan is prone to natural disasters, stakeholders recognize the need to make a company more resistant to effects of such disasters by planning for emergencies that may interrupt business operations. Stakeholders abroad recognize the need to minimize the risks of harm from possible earthquakes and other natural disasters, for example.
  To clarify relevant concerns and countermeasures, Anritsu Group in Japan has made practical Recovery Plans of action to help secure lives and to continue business operations, including plans for initial action and recovery from damage possibly caused by largescale earthquakes, based on regulations to counter the effects of disasters. In addition, we included Action Plans by Headquarters to rebuild Anritsu infrastructure and also Department Recovery Plans for business departments and Group Companies.
  Anritsu Group in Japan aims to adopt a Business Continuity Plan (BCP) to further improve the Recovery Plans and minimize disruption among stakeholders in the event of disaster. As we could anticipate occurrences of infectious diseases, including new strains of influenza, affecting people and, consequently, corporate activities, we distributed to employees a Manual Against Infections to help minimize the incidence and influence of these afflictions.

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