Monthly report on risk management matters

We will report on our risk management and related undertakings from the perspective of recent news headlines.

December 2017

Further improving quality of member services: At meetings of the Advisory Board established in December 2016, we had in-house discussions based on advice given by independent advisors, which led to our taking action on the service system and contents reflecting the discussion results.
We, then, established the Principle for premium service membership. After sufficient time for the Principle to be embedded in our organization, the Board was dissolved.
We will continue our efforts to provide employee training and build internal systems based on the Principle, in accordance with our corporate philosophy of bridging the digital divide in the community.

* Reference: ; The Principle for premium service membership (PDF: 59KB)

Shown on the left is a brochure presenting premium services, prepared in accordance with the basic idea of premium service membership.
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Unlocking of SIM locks: We have informed our actions responding to a change in conditions (rule changes) by carriers. We will review communication charges as an independent company to propose and provide plans and services from options available including major carriers and MVNOs.

Store operation based on our basic CSR policy: Our basic CSR policy defines our mission as "using our stores to eliminate disparities in the information society (bridging the so-called "digital divide") that arise as a result of differences in age, gender, income, education, place of residence and other factors."
As the New Year holiday season is around the corner, our customers tend to have more problems with their digital devices because of the increased occasions to use them at this time of a year. For further understanding and implementation of our CSR policy in the company, we set up opportunities for exchanging information on support services provided to our customers and members to share examples and to have discussions.
Compliance: - We arranged in-house seminars for sales planning and sales promotion personnel on the Act against Unjustifiable Premiums and Misleading Representations.
- In order to continue providing support services to our members in accordance with our basic CSR policy, we are proceeding to thoroughly communicate and reaffirm our commitment to compliance.

Improvement of safety of PCs: In response to system updates such as major updates of Windows 10, we have made a necessary preparation for supporting customers’ PCs and in-company systems in a problem-free manner.
Release of iPhone X: As was the case with iPhone 8, we have informed all stores of implementation matters related to personal authentication, handling of information, how to operate the new iPhone, etc. in order to implement an appropriate sales method for dealing with an increasing number of customers who need support.

Reaffirmation of compliance and company regulations etc.: We continue to reaffirm compliance, business ethics and company regulations and share renewal information such as revisions to the laws by employees' renewing their oaths periodically.
Response to new smartphone launches: Based on each carrier's handling policy, we have informed all stores of implementation matters related to model changes and trade-ins etc.

Responding to lightning strike incidents: We will suspend the repair and setup work for computers that customers left at store counters. This is because power surges from lightning strikes and other reasons increase the risk of damage to computers. All stores accept consultations and repair requests at any time for computer malfunctions caused by lightning strikes.

Responding to inclement weather: Our head office centrally obtains information on typhoons and local weather conditions in a timely manner, and when necessary, adjusts its business hours and/or instructs employees to go home.
New store opening: When we open a new store, we make it a rule to perform a field audit before the store opening to ensure safe operation of the store and to check safety and the quality level of the store’s equipment.
We opened PC DEPOT Smart Life Roppongi Store on July 21, after performing the audit mentioned above.

Accounting auditor for FY2017: SHINSOH Audit & Co. was elected as the accounting auditor in our Ordinary General Shareholders' Meeting.
We continue to strive to strengthen corporate governance.
Change of full-time corporate auditor: A new corporate auditor elected in our Ordinary General Shareholders' Meeting for this fiscal year was appointed as a full-time corporate auditor in the Board of Corporate Auditors.
We have high expectations of his ability to ensure proper auditing by using his vast knowledge of all aspects of management.
For more details of the reason for his election, please refer to the Notice of Convocation of the 23rd Ordinary General Shareholders' Meeting.

Lightning Alert: As we are entering a period of unstable weather, we have activated thunder alert as in previous years.
Regarding PCs that you have deposited in our stores, we may suspend repair and setting work to avoid the risk of the PCs being damaged by lightning during stormy weather or when there is a prediction thereof.
Self-Auditing (Inspection): A staff who is in charge of quality management is stationed at each store and performs self-audit for the store regularly in order to maintain store management duties on an appropriate level at all times. We have also continued efforts to deepen the understanding of management and risks among employees.

Carrying out various seminars and orientations: With the start of the new fiscal year, we renewed our plan for carrying out seminars and orientations within the company.
New employee training: As we do every year, we will carry out training for new employees who joined the company in the spring.
Encouraging employees to take paid vacation: As we do every year, we are implementing a program that encourages employees to take paid vacation—which is designed to accelerate work style improvement, boost store operation and invigorate the staff.

Personnel Changes in the New Financial Year: Where there are personnel changes regarding departments in the new financial year, the handover of job duties shall be carried out in a proper manner under the supervision of the General Audit/Internal Control Office, the Quality Management Department, etc.

Bolstering store audits carried out prior to the opening of new/renovated stores: In February we opened two renovated stores after carrying out a store audit to ensure the stores' quality and safety management prior to their opening.

Preparations for snowfall: Although we have only a few stores in regions that are experiencing heavy snowfall, all of our stores prepare against snowfall every year.
From the viewpoint of securing the safety of our customers and employees, our Knowledge Center measures the current state of the weather and monitors stores by using the cameras installed at each store to ensure safe store operations that adapt to snowfall.
Reinforcing on-site auditing of stores: In addition to the specified audit items, we reinforce our audits by using on-site staff. Store managers and people in charge of each business category participate in the on-site auditing of stores other than their own workplaces in order to improve their auditing skills.