Risk Management

Basic stance on risk management

One of SRM's management priorities is being fully aware of its responsibility to accurately identify and manage an array of risks, particularly those related to asset management, and to execute its businesses in the most effective way possible as an entity specializing in asset management and investment advisory. Another priority is to be fully aware of its responsibility to appropriately manage and control risks related to the possible impairment of assets under management and the potential harm to the interests of customers resulting from inadequate risk management according to the characteristics of the operations and risks. Considering these priorities, SRM takes steps to develop its risk management system.

Risk management system

SRM has established Risk Management Regulations and Risk Management Guidelines to appropriately manage various risks, and has stipulated that, upon identifying the occurrence of a significant risk, employees shall promptly report it to the Chief Risk Management Officer, and to the President and Representative Director.

The Compliance Department is responsible for the overall risk management of SRM's operations, and the Head of Compliance (as the Chief Risk Management Officer), has overall responsibility and authority for risk management across SRM. In addition, department heads are responsible for risk management in their respective departments, as risk management officers.

BCP Response

SRM's business continuity plan (BCP) sets out the roles of the emergency task force to support the fast recovery of priority operations and procedures for the activities of the task force to prevent confusion caused by disasters, including sudden crises (earthquakes, fires, etc.) and progressive crises (flooding, typhoons) and to mitigate damage after a disaster. The BCP also sets procedures for the verification of damage to the properties managed by SRM, the sharing of information with parties involved, and the consideration of disclosure to customers.

Cyber Security

SRM is aware of the importance of cyber security and has developed the arrangements necessary for the BCP (development of an organization, formulation of internal rules, a system to monitor cyber attacks, and the reporting of cyber attacks). SRM regularly provides training for all officers and employees.

Safety Confirmation System

SRM has introduced a dedicated system for early safety confirmation. In the event of a large earthquake, information will be distributed to all officers and employees. The same system is used for disasters other than earthquakes.