2019.11.11

一番効果があるコントロールシステム

昨日の文書を英語にしてみました！

What is more effective than the double checking system in accounting?

In Kyocera philosophy, Mr. Inamori said “Implementing the double checking system is important”. He mentioned several reasons and this inspired me to think about more effective approaches and how to combine both approaches.

Q: What is the double checking system on which Mr. Inamori puts high importance?

A: This is equivalent to the internal control. Since Kyocera’s early stage, Mr. Inamori has been maintaining this double checking system: eg,each business process, which is relating to petty cash, should be completed at least by two staffs.   

Q: Are there any example?

A: for instance, instead of signing-off all the documents by CEO, in Japan, the corporate seal and CEO seal have been used as the substitute of signing-off. Those seals have to be stored and supervised by C-class officers. However, sometimes, depending on the internal control system, the mis-use of seals or accident happens due to the fraud or negligence in terms of seal-use procedure. Therefore, Mr.Inamori set out the system where the person who requests the seal use should be different from the manager who actually put the seal on the documents, furthermore, the person who stores and supervises the seal maintenance is also different. This is the internal control procedure that Mr. Inamori made. 

Q: What is the interpretation or objective of this philosophy? In other words, why is it so important?

A: Mr. Inamori said that no matter how honest and sincere the person is, against his/her will, he/she may be given in to temptation. This will end up a very unpleasant outcome not only for that accused staff but also for the management. Therefore, leaders should set up a system where no person becomes guilty. In other words, climes or fraud happen not because of the personality but of the system’s deficit.

Q: Do you think this double checking system always works ?

A: Basically, Yes I do. However, as the complementary system, I would suggest relying somehow on people’s instinct or intuition. Even though the double checking system exists and the person in charge is honest and sincere, unless that guy can feel something different toward the unusual environment, he / she would unintentionally be the victim of the systematic fraud. For instance, someone can cheats him/her to complete the crime.

Q: Is there any example that instinct or intuition worked?

A: For instance, think about a lady who works as a compliance officer. One of board members approaches her and asks her to reinforce the compliance system. Given that guy’s character and his background, that lady feels “weird” and feels very much uncomfortable to implement such updated compliance system. Later, she finds out that board member is involved in the organized fraud and wants to find out the informer. She feels that her six sense and intuition were right.

Q: How can we sharpen such instinct or intuition?

A: Aikido somehow helps to get your senses awake towards unusual conditions. Aikido puts much importance on the first contact with your opponent and your feeling; how you assess your opponent’ will towards you. As the Kang-Fu actor, Bruce Lee mentioned in his film: “Don’t think, just feel!”, feeling something strange is the primitive but effective approach to prevent frauds.   

Q: What are the lessons learned from this episode?

A: Double checking system works to prevent people from committing frauds however, keeping your six sense awake toward weird situation also completes existing internal control system.