Sanrio regularly assesses the effectiveness of the Board of Directors and maintains an internal control system.

Directors and corporate auditors are appointed based on experience, expertise, responsiveness, and decision-making skills.

Officer remuneration is determined individually based on the policy established by the Board of Directors.

The Company maintains a compliance system and conducts activities to raise compliance awareness to ensure full compliance with laws and regulations.

The Risk Management Committee conducts risk assessments and implements countermeasures.