Risk Management
Policy and Concept
In order to sustain our business activities in the face of significant changes in the external environment, including a decline in the total domestic population and working-age population, and an increase in geopolitical and natural disaster risks, the Tokyo Tatemono Group has identified strengthening our risk management framework as one of our material issues. The Tokyo Tatemono Group seeks to appropriately manage risks that could affect the Group's business to achieve stable improvement in corporate value. With this in mind, we have established related regulations, created a risk management framework, and are carrying out ongoing risk monitoring and control.
Structure
In promoting risk management, we have designated the president as the chief risk management officer and have established a Risk Management Committee chaired by the president to oversee risk management for the Tokyo Tatemono Group.
The Risk Management Committee formulates an annual risk management plan, evaluates and analyzes key management risks for the Tokyo Tatemono Group (priority risks), formulates preventive measures and countermeasures, and periodically monitors the status of countermeasures.
The Tokyo Tatemono Group has also established a risk management system based on the Three Lines Model* in order to maintain and improve the effectiveness of risk management. For risks other than priority risks (departmental management risks), in addition to the general managers of each department who are risk management officers, various committees act as risk response organizations (risk owners) (the First Line) to appropriately prevent and manage the risks, reporting to the Risk Management Committee. The corporate departments and the planning departments of each business division (the Second Line) monitor and provide support and guidance regarding risk management at each department. The Internal Audit Department (the Third Line) audits and provides advice, from an independent standpoint, regarding the risk management of the corporate departments and planning departments of each business division. In addition,
The chief risk management officer (Tokyo Tatemono's president) is not a member of the Audit and Supervisory Board, and the Risk Management Committee operates independently of the Audit and Supervisory Board.
The Sustainability Committee acts as the risk response organization (risk owner) to prevent and manage sustainability risks in cooperation with relevant departments.
Important matters among those deliberated at Risk Management Committee meetings are brought up for discussion by or reported to the Board of Directors, with the Board overseeing the effectiveness of the Tokyo Tatemono Group's risk management.
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*The Group's risk management structure was developed with reference to the following external standards and frameworks.
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・ISO 31000: An international standard for risk management
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・Enterprise Risk Management (ERM): An enterprise-wide risk management framework released by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)
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・Three Lines Model: Released by the Institute of Internal Auditors (IIA)
Risk Management Structure
