Risk Management Policy

The risk management policy and the related guidelines are all approved by the Board of Directors and clearly delineate the responsibilities of risk management activities. 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, liquidity risk, emerging risk (including climate related 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.