Integrated risk management and capital allocation system
First written in FY2017. 4 of 7 entries say "Advanced", first in FY2021. Latest entry: FY2026.
2 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Following approval from the Financial Services Agency dated 25 March 2026, the Bank changed the method used to calculate credit risk-weighted assets from the standardized approach to the foundation internal ratings-based approach effective from the end of March 2026.」
The introduction of FIRB enhanced the assessment of credit risk using internal ratings and its reflection in the capital ratio. - 2026-03-31AdvancedTimely disclosure
「Through this change, we will further enhance our risk management framework, improve the soundness and transparency of the Bank, and continue working to provide even better services to our customers.」
Following approval by the Financial Services Agency, the Bank announced changes to the methods used to calculate its capital adequacy ratio: credit risk was changed from the standardized approach to the foundation internal ratings-based approach, and the operational risk amount was changed from the standardized measurement approach (ILM=1) to a method based on internal loss data. This is recorded as a specific development of the management methods described in the existing integrated risk management thread. - FY2023AdvancedAnnual report
「The Bank Group recognizes the possibility that these risks may arise and works to prevent them and respond if they occur. It has established a risk management framework and manages risks according to the characteristics of the relevant business and risks. In particular, for credit risk and market risk, which are important risks associated with lending and securities investment, the Group's main sources of revenue, it uses the statistical method VaR to measure the maximum potential loss (amount of risk) that may be incurred in the future at a given probability, and controls the amount of risk within the range of its capital so that risk does not become excessive relative to its financial strength.」
Specifies VaR measurement and management through stress testing for credit and market risk, using confidence intervals of 99.9% and 99% and holding periods of one year and 120 business days, respectively. - FY2021AdvancedAnnual report
「The Bank measures credit risk using a 99.9% confidence interval and a one-year holding period, and market risk using a 99% confidence interval and a 120-business-day holding period, and controls the amount of risk within the range of its capital. It also conducts stress tests regularly.」
For integrated risk management, specifies the confidence intervals and holding periods for credit and market risk, and indicates management using VaR and stress testing. - FY2019RestatedAnnual report
「The Bank Group practices integrated risk management by quantifying, using statistical methods wherever possible, the various risks associated with financial instruments, allocating capital commensurate with the amount of risk (risk capital) to each risk category, and monitoring risk and return through a capital allocation system.」
Continues integrated risk management through risk measurement, risk-capital allocation, and monitoring of risk and return. - FY2018RestatedAnnual report
「The Bank practices integrated risk management by quantifying, using statistical methods wherever possible, the various risks associated with financial instruments, allocating capital commensurate with the amount of risk (risk capital) to each risk category, and monitoring risk and return through a capital allocation system. At the management-wide level, it works to improve efficiency while securing stability and soundness.」
Continues integrated risk management through risk measurement, risk-capital allocation, and monitoring of risk and return. - FY2017First statedAnnual report
「The Bank practices integrated risk management by quantifying, using statistical methods wherever possible, the various risks associated with financial instruments, allocating capital commensurate with the amount of risk (risk capital) to each risk category, and monitoring risk and return through a capital allocation system」
Describes a management method that quantifies credit, market, liquidity and other risks, allocates risk capital, and monitors risk and return.