Regional Governance and Support Through RHQs
As part of its global operations, the Resonac Group has established Regional Headquarters (RHQs) in four regions: North and Central America, Europe, Southeast Asia, and Greater China, to strengthen governance and support for affiliated companies. Working in coordination with the head office, RHQs provide control and support for affiliated companies in their respective regions and underpin the Group’s global management structure, including its response to laws, regulations, and business practices in each country and region.
Positioning of RHQs
The Resonac Group clarifies the roles and responsibilities of each organization based on the lines of defense model in risk management. Under the Rules on Group Management, RHQs, together with CXO organizations, are positioned as the second line in the lines of defense. In coordination with CXO organizations, RHQs are responsible for risk management and monitoring for affiliated companies in their respective regions.
The regional oversight functions of RHQs strengthen group management from both governance and operational support perspectives. Through these functions, RHQs deploy and implement in each region the policies established by head office corporate functions (CXO organizations), serving as regional hubs that connect Group-wide policies with the circumstances of each region.
Current initiatives
In their governance role, RHQs promote the regional deployment and adoption of policies and rules established by the head office. They also work to enhance governance across their respective regions by monitoring the status of implementation, identifying issues through surveys and reviews, and implementing various head office-led initiatives locally.
In their support role, RHQs support the autonomous operation and growth of affiliated companies by providing shared services in areas such as accounting, human resources, and IT, as well as support for operational improvements and learning opportunities.
At the same time, the functions and roles expected of RHQs vary due to differences in business characteristics and maturity among regions. There are also areas in which some functions of CXO organizations have not yet been fully deployed in the regions.
In light of these challenges, the Resonac Group is working to optimize the allocation of functions according to the circumstances of each region, strengthen staffing, and enhance service delivery with attention to cost-effectiveness. The Group will also continuously review and enhance the services provided, thereby establishing a more effective group management structure.