Governance and Risk ManagementRisk Management
Tokyo Century Group has proactively designed appropriate risk countermeasures according to risk scale and likelihood. Our systematic countermeasures to minimize the risk of losses are as follows.
At Tokyo Century, the Board of Directors lays down basic policies relating to risk management to ensure appropriate risk management of the Company. The Comprehensive Risk Management Committee comprehensively identifies and assesses risks concerning the Company to appropriately address risks qualitatively and quantitatively as necessary based on the rules of the Committee. Risk management structure, methods and others are specified in the rules relating to comprehensive risk management that are determined at the Management Meeting after a deliberation by the Comprehensive Risk Management Committee. The Comprehensive Risk Management Committee reports the amount of risks and risk management status of the entire Company at the Management Meeting and the Board of Directors on a regular basis and on a case-by-case basis. In addition, the Committee verifies and assesses the effectiveness of risk management and constantly reviews the whole status.
The Credit Risk Executive Committee sets basic policies in accordance with its rules, measures credit risk, and manages risk. The Project Evaluation Meeting uses a rule-based methodology to assess and decide on projects that require complex analysis, such as major deals and new schemes.
Market and Liquidity Risks
The ALM Committee comprehensively manages and procures funds based on committee rules to address interest rate and foreign exchange fluctuations and other market risks and liquidity risk related to funding.
The Management Meeting and the Board of Directors manage investment policies, status and others to control investment risks, including stock investment and others.
Tangible Assets Risk
The Comprehensive Risk Management Committee along with respective groups in charge of those risks measure the amount of risks involved in assets, such as real estate, ship, aircraft, automobile and others as well as managing the risk status.
Information Security Risk
The Company manages information security risk based on a Basic Information Security Policy, rules for handling personal information, and a management system based on ISO 27001 standards.
System and Administration Risk
The IT and Administration Strategy Management Committee was established to discuss IT strategy, IT investment, and administrative organization to address system risk and administration risk based on the rules of the committee.
The Business Risk Management Division addresses operational risk by identifying, quantifying, and reviewing risk countermeasure, while the Comprehensive Risk Management Committee comprehensively provides overall risk management.
Regarding the response procedures in the event of a largescale natural disaster or other crisis, it is specified in the rules for crisis management and business continuity plans (BCPs) determined at the Management Meeting after a deliberation by the Comprehensive Risk Management Committee.