It's a little hard to tell from the photo, but it looks like you have a vertical panel siding with a 1X window trim applied over the siding and a 1X base above the concrete "ledge" which presumably caps (or is) the foundation.
My stock comment in situations such as these is that if you leave a horizontal ledge for water to stand on, it will. And as it stands there it will migrate under the adjacent components of the home, causing rot. In your pic, I see no flashing, and I can't detect any slope to the concrete sill -- not from the photo, anyway. While real cedar is rot resistant --up to a point -- I would still be very concerned about damage to the plate and wall structure. At some point, you have to pay the piper. If it's not damaged now, it will happen later. How soon? I don't know. How deep are the overhangs? Are there gutters?

If the sill slopes properly, there may not be any issues currently. But I still say that flashing under the wall would be a real good idea.