Basic Policies
Based on our Basic Policies on Internal Controls, we have established our Risk Management Rules as
internal regulations.
The Risk Management Rules manage the risk of losses consequent upon our corporate group’s business
activities by ranking those risks and dealing with each one in order of priority, establishing
procedures and structures to prevent their occurrence, and methods to deal with them if they do occur.
Structure and Operation
The Risk Management Rules divide risks involved in our business activities into two categories:
management strategy risks, and business risks. Each category is managed according to their respective
stipulated method.
Management Strategy Risks
Risks in areas such as alliances and new business, which can generate both profits and losses, are
categorized as “management strategy risks.”
The optimum corporate governance system is constructed, and the risks are fully deliberated in important
meetings such as board meetings and management meetings. An appropriate management diagnosis is made
based upon our rules concerning decision-making authority, our group company operational rules, and any
other relevant rules. In addition, we make continual improvements based upon evaluations and monitoring
of these series of decision-making mechanisms and the effectiveness of their application.
Business Risks
Risks that impede our operations and only generate losses and disadvantages are categorized as “business
risks.” In order to manage business risks more appropriately, we designate the directors in charge of
divisions and departments as “the person in charge of risk management.” We have established a risk
management committee, which is chaired by the president and under the direct control of our board of
directors. This committee meets regularly to decide policies to counter major business risks. Any
important matters that arise are reported to the board of directors.
Business Risk Management Structure
