NAF and the Asset Management Company aim to avoid and minimize investment management related risks concerning NAF’s asset management.
For details, please refer to “Investment Risk, 2) Risk Management Structure for Dealing with Investment Risk (Excerpts from the Securities Report).”
Risk Management
The Asset Management Company draws up risk descriptions, management stances, and monitoring guidelines regarding respective conceivable risks to be comprehensively addressed under its risk management program.
We have accordingly established the Risk Management Council, which is chaired by the President & CEO, and serves as a body tasked with comprehensively managing risk and setting basic policies for addressing such risk. At the start of each fiscal year, it formulates basic policy on managing risk and accordingly furnishes approval for the risk management program.
Individual teams are assigned to manage the respective risks, and general managers of each team form risk management working groups. Once every three months, the working groups sum up the status of risk management and report their findings to the Board of Directors.
Information Security
The Asset Management Company has drawn up Information Management Rules for the purpose of appropriately managing information security, and has accordingly established a structure under which the Chief Financial Officer (CFO) is designated to serve as the Chief Investment Officer (CIO). In addition, we seek to educate and raise awareness regarding information management through compliance training, targeted e-mail attack exercises, and other such initiatives for officers and employees.
During the year from April of the previous year to March of the current year, we did not encounter any incidents involving failure or other such issues with significant implications for NAF’s operations or society.
Business Continuity
The Asset Management Company has drawn up the Crisis Management Manual stipulating emergency measures and action guidelines for the purpose of enabling a swift and appropriate response in the event of a disaster, data breach, or other such crisis in terms of minimizing the impact of such incidents on business execution and restoring normal business operations subsequent to the occurrence. We furthermore strive to ensure safety and security by regularly conducting safety confirmation drills and other such exercises for officers and employees.