Managing Credit, Market and Liquidity Risks in Financial Instruments
First written in FY2021. 1 of 2 entries say "Advanced", first in FY2026. Latest entry: FY2026.
The whole theme swung hardest in 2020: 9 of 34 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The consolidated subsidiaries are also managed using methods consistent with the Company’s Credit Management Procedures. Because derivative counterparties are limited to major financial institutions with strong creditworthiness, the Company recognizes that credit risk is extremely low.」
The Company explicitly extended the scope of credit risk management to its consolidated subsidiaries and disclosed that derivative counterparties are limited to major financial institutions. - FY2021First statedAnnual report
「In accordance with its credit management procedures, the Company regularly monitors the status of counterparties for trade receivables, manages due dates and balances by counterparty, and identifies and mitigates at an early stage concerns about collection arising from deteriorating financial conditions. The fair values of investment securities and the financial condition of issuers are monitored regularly, and holdings are reviewed continuously. The responsible department prepares and updates cash-flow plans in a timely manner based on reports from each department, and manages liquidity risk by maintaining on-hand liquidity and through other measures.」
The Company has an integrated framework for managing credit risk, market risk on investment securities and liquidity risk associated with funding through regular monitoring, review of holdings and cash-flow planning.