Risk of trading and investment losses due to unpredictable events
First written in FY2021-Q3. 1 of 3 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2023-Q3.
No other company in this theme has enough history to compare yet.
- FY2023-Q3RestatedAnnual report
「Valuation of financial instruments requires greater judgment in the fair value measurement process when markets are under stress due to heightened volatility and reduced price transparency resulting from the spread of COVID-19 in 2020 and 2021 and Russia's invasion of Ukraine in 2022, among other factors.」
The explanation was continued that Russia’s invasion of Ukraine was a factor behind increased market volatility and reduced price transparency in relation to event risk from armed conflicts and similar events. - FY2023-Q1MaterialisedAnnual report
「When markets are under stress due to heightened volatility and reduced price transparency, such as following Russia’s invasion of Ukraine in 2022, greater judgment is required to determine fair value.」
The event risk from armed conflicts and similar events, which had previously been defined, was disclosed as having materialized through increased market volatility and reduced price transparency following Russia’s invasion of Ukraine. - FY2021-Q3First statedAnnual report
「Event risk refers to potential losses arising when markets experience sudden fluctuations due to events that are difficult to predict in advance, such as natural disasters, human-caused disasters, epidemics, terrorist acts, armed conflicts, political instability and other events affecting Nomura’s business or counterparties.」
Event risk arising from natural disasters, infectious diseases, terrorism, armed conflicts, political instability and abrupt regulatory or policy changes was newly classified as a separate risk relating to losses on trading and investment assets.