Canon's ISS score on governance is an 8, on a scale of 1-10 with 1 being low risk and 10 high risk.
Canon's second highest scoring pillar was compensation. The numbers are taken from the SEC 20-F. The retirement allowance system was abolished on March 28, 2013. The year 2014 will be the first year this revision goes into effect.
Canon's highest scoring risk area is Board Structure. Previously the board had lacked outside, independent (per SEC) members. In March, 2014, Canon remedied this and restructured their Corporate Governance. The Board of Directors is responsible for ratifying decisions after deliberation, using an Executive Officer System to make timely decisions and to better focus on management and supervision. The Audit & Supervisory Board is responsible for checking the directors are making decisions in the correct manner, for verifying audits are appropriate, and for monitoring the independence of external auditors per the Sarbanes-Oxley Act.