Risk Management
Sustainability
Basic Approach to Risk Management
As the risks associated with our business become increasingly diverse and complex, the Company has established the fundamental principles for risk management in the Integrated Risk Management Rules. We identify the types of risks to be managed, such as credit risk, market risk, and residual value risk, clearly designate the responsible departments, and implement appropriate management according to the characteristics of each risk.
Risk Management Framework
The Company's risk management framework is based on the Integrated Risk Management Rules. In accordance with our strategic objectives and business operations, we identify the location and types of risks that require management, and implement appropriate measures tailored to the characteristics of each risk, following the principles below:
- Management based on quantification (as necessary, depending on the characteristics of each risk)
- Ensuring alignment with business strategy
- Establishment of a control structure
- Preparedness for emergencies or critical situations
- Verification of the framework (verified by the Corporate Auditing Department)
In addition, the General Manager of the Corporate Planning and Coordination Department and the General Managers of departments responsible for each category of risk regularly report the status of risk management to the executive officers in charge and request approval and submit reports on risk management to the Board of Directors. Furthermore, the Corporate Planning and Coordination Department implements risk management within a structure that includes regular reporting to shareholders on matters related to risk management.