The Executive Management Committee, which is chaired by the President and Chief Executive Officer, supervises overall risk management for the Group. Under the supervision of the Executive Management Committee, the Strategy Planning Special Committee manages business risk, and the Risk Management Special Committee manages administrative risk.
As the person in charge of legal affairs and compliance, the Chief Risk Officer, the Chief Legal Affairs Officer, and the Chief Officer for Compliance, the director in charge of risk management is responsible for Group risk management as chair of the Risk Management Special Committee. The director in charge of risk management periodically reports on risk management to the Board of Directors and the President and Chief Executive Officer.
The director in charge of risk management periodically revises risk management processes and reports on progress to the Board of Directors. Climate change and large-scale natural disasters are seen as particularly important management issues. As such, revisions to the Group’s response to climate change related risk are made once a year and those for large-scale natural disaster related risks three times a year.
The director in charge of risk management is not a member of the Board of Corporate Auditors and is separated from the chair of the Board of Corporate Auditors. Further, the Risk Management Special Committee, of which the director in charge of risk management is chair, operates independently from the Board of Corporate Auditors.
The Strategy Planning Special Committee has been established for the purpose of managing business risks, deliberating and managing the execution of management plans and specific management issues.
The Strategy Planning Special Committee provides the following functions for Mitsui Fudosan and the Mitsui Fudosan Group.
1. Formulation and deliberation of Group strategies
2. Medium- to long-term business planning and fiscal-year planning, prior deliberation, and coordination
3. Deliberation on policies to address specific management issues and management of progress in addressing them
4. Planning, proposal formulation, and deliberation of organizational structures, staffing, etc.
5. Supervision and management of Mitsui Fudosan and the Mitsui Fudosan Group business risks
6. Deliberation of other important matters
The Risk Management Special Committee has been established for the purpose of managing administrative risk. The committee formulates risk management policies and plans, identifies and assesses risks, formulates response measures, and issues instructions.
Based on ISO 31000, the international standard on risk management, the Risk Management Special Committee implements a PDCA cycle to comprehensively manage administrative risk, and has a system in place to accurately engage in crisis response and preventative risk management. When a compliance violation occurs, the Risk Management Special Committee orders an investigation and response, and monitors the situation.
The Risk Management Special Committee fulfills the following functions for Mitsui Fudosan and Mitsui Fudosan Group.
1. Formulation of risk management policies and plans
2. Establishment of an organization for risk management and clarification of responsibilities and roles
3. Identification and evaluation of risk issues to be managed, formulation of countermeasures, and issuance of instructions
4. Identification and evaluation of risk management, formulation of improvement measures, and issuance of instructions
5. Deliberation of response measures and issuance of instruction in cases of business risk arising from emergency incidents, accidents, etc.
In principle, the Risk Management Special Committee meets on a once-a-month basis, to identify and understand risk issues, and then review and propose preventative and response measures. The committee conveys information to Mitsui Fudosan and the Mitsui Fudosan Group as necessary.
Items concerning the Mitsui Fudosan Group's financial position, operating results, and cash flows that may have a significant impact on investors' decisions include the following. Forward-looking statements in the text are based on the judgment of the Mitsui Fudosan Group as of the end of the consolidated fiscal year under review.
Risks taken primarily to promote business and acquire profit
Operational risk associated with administrative duties
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