The risk management policy and the related guidelines, which are the mainstay of risk management, are all scrutinzed by the Risk Management Committee and approved by the Board of Directors after review. They clearly delineate the responsibilities and operating mechanisms of risk management. Our employees are required to follow the policies and the guidelines, especially for the transactions related to investment and loan business.
The Company's main risk sources can be categorized into market risk, credit risk, operational risk, insurance risk, liquidity risk, emerging risk, ESG and climate risk, reputation risk, and capital adequacy. The Risk Management Division is responsible for developing management guidelines, rules, and compliance policies for each risk type of risk concerned. The subsidiaries also set the criteria based on the policies set by the Company and authority for risk management activities.