Investor Presentaiton
Basic strategy 2: Strengthen systems
-Promotion of structural reforms and reinforcement of management base for the future-
2-3 Sophistication of Risk Management
In the face of increasingly complex and diverse risks affecting
management, we are strengthening our risk management
system to anticipate and appropriately respond to various
types of risks that may arise.
Significant risks inherent in the implementation of the
Medium-term Management Plan
Item
Securities investment
strategies
DX and system strategies
Risk management
Deeper risk-taking to the
Credit risk management
region
Market risk management
Cyber security, third party
Sale of financial instruments in
general
Compliance/conduct risk management
Others
*
Prevention of money laundering and
terrorism financing, climate change risk,
operational resilience
Various risk management of the Group companies
(strengthening of the Group governance)
Enhancing three lines of defense system
Risk owner, Risk and Compliance Management Divisions, Audit Division
October 2022
Risk Management Office was reorganized into the Risk Management
Division (from 4 to 8 persons).
"Market Risk Management Office" (3 persons) was newly established as
an office within the Risk Management Division.
TOCH
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TOCHIGI BANK
Restructuring of screening system
• Objective data and qualitative information on area characteristics
are collected/accumulated, and shared.
• Risk-taking policy for areas and industries are clarified.
Business feasibility assessment and policy on initiatives to
improve the business value of customers are clarified.
Securities investment strategies
Even amid the current volatile market environment, we aim to
improve profitability by combining risk hedging and flexible
trading, while preventing the expansion of risk.
[Investment sophistication] Profitability improvement, risk control,
human resource development
Cyber security
We have established a business continuity structure with a
dedicated cyber security team taking necessary measures
mainly to prevent unauthorized system intrusions and
information leaks, as well as preventing the spread of damage
and promptly restoring operations in the event of a cyber attack.
Strengthening of customer-oriented
business operations
In building a sustainable deposit asset business, we will develop
an appropriate conduit risk management system to ensure long-
term returns commensurate with customer risk and sales
commissions and other costs.
Prevention of money laundering, etc.
Under the Action Policy on the Prevention of Money Laundering
and Terrorism Financing, we are developing a system to
properly assess risks and take more effective countermeasures
based on the "Guidelines for Anti-Money Laundering and
Combating the Financing of Terrorism” published by the
Financial Services Agency.
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