PDCA Management of Board- and Department-Identified Risks

「The Internal Audit Office oversees these risk management activities. In addition to regular risk management based on plans formulated at the beginning of the fiscal year, midyear progress monitoring, and fiscal year-end aggregation, the Group has established a system for objectively analyzing and assessing the impact on the scope of evaluation arising from the adoption of new businesses, revisions to accounting standards, and other developments.」

「The business environment surrounding the Group is changing significantly. The Group classifies particularly important risks subject to regular oversight by the Board of Directors as “risks identified by the Board of Directors,” and risks important to each business division as “risks identified by each business division,” and is strengthening its PDCA management. Specifically, the Group has established a system that clarifies the risk management structures established by each risk owner for identified risks, as well as the roles of the parties responsible for controlling those risks and the control methods. Under the direction of the President, the officer responsible for the Internal Control Committee and the risk management team led by the Internal Audit Office and the Corporate Planning Department work with the officers responsible for the relevant divisions and risk owners to develop specific risk responses, and regularly report to the Internal Control Committee and the Board of Directors on the progress of those controls, the achievement rates of risk mitigation measures, and other relevant conditions.」