Professional services（Tokyo Kyodo Risk Management Service Co., Ltd.）

We diagnose and evaluate the client’s potential risks of legal liability of certified public tax accountants and suggest improvements to make the structure less prone to such risks.

First, we will ask you to answer the questionnaire for the risk assessment, and then we will divide your answers into four categories (advisory contract/relationship with client/organizational development/consulting) and rate them on a 5-point scale from A to E. (We will also give you an overall rating.)

When we review each category from the perspective of preventing legal liability of certified public tax accountants, we will tell you which categories are likely to cause problems, what improvements would reduce such risks, and propose specific improvements to make your office as a whole less prone to legal liability of certified public tax accountants.

If you have other specific matters you would like to consult with us, we will be happy to support you.

■Consulting on preventing legal liability of certified public tax accountants

■Assessment and evaluation of risks of legal liability of certified public tax accountants

We propose to achieve growth by reducing risks with a balance of three factors: loss prevention, loss reduction, and segregation/diversification.

We can also provide support in establishing a risk management system for tax offices.

There are two main methods of risk management for preventing legal liability of certified public tax accountants: risk control and risk financing. Risk control measures include avoidance, loss prevention, loss reduction, and segregation/diversification. Risk avoidance, which means discontinuing the risky activity itself and blocking out expected risks, may be effective as a risk control, but it is an action that conflicts with the expansion of the realms of the tax offices’ business, and may lead to stagnation of the business. Tax offices seeking to grow their business should promote their operation with an awareness of the balance among three risk control measures other than risk avoidance.

There are two means of risk financing: transfer and possession. If you possess the risk, you will need to bear your own costs in the event of incurring a loss, so it is advisable to transfer the risk while recognizing the degree of risk possessed by each tax office and using insurance or other means.

■Organize seminars for staff handling risks of legal liability of certified public tax accountants

■Handling of insurance that increases the amount of indemnity/fills the difference in terms and conditions