Basic Risk Management Policy and Structure

With risk management positioned as one of its management policies, MTAM is facilitating risk management according to the Risk Management Regulation set forth for ensuring the continuity and stable growth of businesses and soundness of management.
The Asset Management Company has also established the following risk management system.

（a）Board of Directors

The Board of Directors makes decisions on the formulation and revision of plans for risk management (Risk Management Plan) and receives regular reports from the Compliance Officer on the progress of the plan.

（b）Compliance Officer

The Compliance Officer, as the Chief Risk Management Officer, establishes and maintains the risk management framework of the Asset Management Company and controls operations related to risk management.

（c）General Managers

The general managers as risk management managers establish and maintain a risk management framework under their jurisdiction, and control and execute operations related to risk management under their jurisdiction.

Risk Management Process

In accordance with the "Risk Management Regulations," the Asset Management Company practices company-wide risk management by conducting risk assessments and formulating a "Risk Management Plan" every fiscal year, as well as by regular checking on the progress of the plan. The risk management process is as follows:

①　Identify risk items in each department by risk category.
②　Assessment of "frequency of occurrence (possibility of occurrence)" and "scale of damage (impact)" of each risk.
③　Based on the results of the above assessment, determine which risk items could be material risk items.
④　Set management targets and formulate response measures for each determined material risk item.
⑤　Assessment of the implementation status of response measures, and report on the results of the assessment and corrective/improvement matters based on the assessment.

Education and training

Chief Risk Management Officer or risk management officers provide all managers and staff members with education and training to make sure that they understand and recognize risk management and the importance thereof.