Establishment of risk management structure

Situations of risk management structure

We take the following measures to establish rules and other structures related to management of loss risk:

1

Formulation of basic policies on risk management

The board of directors has provided for basic policies on our risk management based on risk management policies of Sumitomo Mitsui Trust Group provided for by Sumitomo Mitsui Trust Holdings and Sumitomo Mitsui Trust Bank.
2

Resolution and report at the board of directors

Important matters on risk management are resolved and reported at board meetings.
3

Setup of risk management departments, etc.

The administration department has a department in charge of overall risk management, and risk management departments are set up for each risk category.
4

Formulation of risk management plans

Based on policies related to risk management of Sumitomo Mitsui Trust Holdings and Sumitomo Mitsui Trust Bank, we formulate our plan (risk management plans) under the guidance by holding companies and trust banks every fiscal year. At the same time, we have established structures to manage risk of our subsidiaries.
5

Implementation of education/training related to risk management

We continuously implement education/training related to risk management to officers, employees, etc.

We take the following measures to properly manage business operation of our subsidiaries:

1

Establishment of rules/structures related to business operation

We have developed rules providing for basic matters on business operation of our subsidiaries and established structures that ensure appropriate measures in terms of compliance, customer protection, etc. and risk management.
2

Setup of departments to give guidance/support and implementation of report

We have set up a department in charge of guidance/support for our subsidiaries and made regular report on situations of our subsidiaries to our board of directors/the management council.
3

Implementation of internal audits

The internal audit department implements internal audits of our subsidiaries and appropriately reports audit results to them and our board of directors on a timely basis to ensure proper business of the whole Group.