Integrated Risk Management

Message from the President Management Policy Organization Offices Head office Location JSF Group Corporate Governance Basic Concept of Corporate Governance Compliance System Business Conduct Guidelines Risk Management Integrated Risk Management Credit Risk Management Market Risk Management Liquidity Risk Management Processing Risk Management System Risk Management Internal Auditing System Privacy Policy

Top Page > Corporate Profile > Integrated Risk Management Integrated Risk Management       Integrated risk management is a method to quantify various risks with unified methodology and to manage the total amount of risks within the realm of management vitality.       For credit risks and market risks, after allocating risk capital to each risk operation department by risk category within the realm of our own capital, we quantify risks with the methodology of Value at Risk (VaR) and manage the calculated volume of risks within the range of that allocated risk capital.       With corresponding to basel II regulation enforced in mar 2007, operational risks, which consists of processing risks and system risks, is measured by basic method and we allocate risk capital amounts on it.       Allocated amounts of risk capital are determined as final at the Management Committee, with prior deliberation at regular "Risk Capital Meeting" in every March.       Each risk operation department controls the risks within the realm of the allocated risk capital. Risk Management Department, which is independent of risk operation departments, quantifies the risks, monitors risk operation conditions, and reports to board members.       In case a possible rise for a risk may exceed the allocated amount of the risk capital, an extraordinary "Risk Capital Meeting" will be held to deliberate responses to the case and then consult the Management Committee. Risk Capital       Risk capital is capital necessary to cover losses caused by risks generated from business operation. Value at Risk (VaR)       VaR is the maximum expected loss on an asset calculated with a certain period (holding period) and a certain probability (confidence level). This is calculated based on data in the past with statistical method. In our company, VaR is calculated based on confidence level of 99% and holding period of 1 year. Risk Capital Meeting       This is a meeting to deliberate issues such as allocated amount of risk capital and so forth. The meeting is organized by the managers of Risk Management Department (chairperson), Planning Department, Treasury Department, and all the other business departments concerned. Management Committee       This is a committee to deliberate important matters concerning business execution. The committee is organized by directors who serve as the executive officers concurrently.

Top Page IR / Financial Information Corporate Profile Range of Operations Contact Us