Risk Management Framework

The Asset Management Company is fully aware that it is responsible for accurately identifying and managing various risks, particularly those related to asset management, in order to ensure the best possible execution of its duties and that inadequate risk management can result in impairment of client assets and harm their interests. Accordingly, we have positioned the appropriate management and control of these risks in accordance with the characteristics of our business and risks as one of our top management priorities, and are working to develop a risk management framework.
As for risks related to business operations, the heads of each department and office in charge of their respective operations serve as risk management officers, monitoring risks within their departments and offices, analyzing and evaluating identified risks, and taking measures to prevent their materialization as necessary. Regarding risk management across the entire company, the Internal Audit Office supervises. The head of the Internal Audit Office serves as the overall risk management officer, consolidating risks identified across departments and offices, ensuring that appropriate risk management measures are implemented in each department and office according to the nature, evaluation, and distribution of risks.

BCP Response

The Asset Management Company has established a “Crisis Management Manual” that sets out policies for advance preparation, ensuring a chain of command, preventing the spread of damage, and ensuring the continuity of important operations. The purpose of this manual is to rapidly ensure the safety of all those working at the company, including directors, employees and temporary staff, to mitigate risks and damage, to limit the expansion of losses to unitholders and stakeholders due to business interruption, to ensure the continuity of important operations and to achieve early recovery in the event of an emergency caused by a man-made or technologically-induced crisis, or a natural disaster such as a major earthquake, fire, typhoon, wind or water damage, abnormal weather, or the spread of a new strain of influenza or livestock disease, or in the event of an emergency caused by a disruption or suspension of lifelines.

Information Security

The Asset Management Company has established a basic policy to appropriately protect information assets, and has also formulated the “Information Security Regulations” with the aim of maintaining and improving the level of organizational management of information and information security. In addition, the “Information Management Manual” stipulates the basic matters, management framework, operating procedures, management standards, etc. for the appropriate management, protection and use of information assets held.