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, and also the President of the Risk Management Unit reports on risks to the President & CEO of the Company. In addition, through supervision on these reports, the Committee verifies and assesses the effectiveness of risk management and constantly reviews the whole status.

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