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Risk Management

Risk Management System

To ensure financial soundness and appropriateness of business operations, Tokio Marine Group has identified the various risks surrounding it in an overall fashion and implements appropriate risk management corresponding to the nature, status and other attributes of risks.
The Company promotes the development and enhancement of the risk management system for the entire Group in accordance with the "Tokio Marine Group's Basic Policies for Risk Management". The Company also manages quantitative risks for the Group in order to maintain credit ratings and to forestall insolvency in accordance with the "Tokio Marine Group's Basic Policies for Integrated Risk Management".
Among various risks, the Company recognizes that insurance underwriting risks and investment risks (core risks) must be managed as sources of earnings. The Company therefore controls these risks considering the balance between risk and return.
The Company also identifies administrative risks, system risks and other associated risks (non-core risks) that arise from the Group's business activities and strives to prevent the occurrence of or reduce these risks.
The Company presents its basic policies for risk management and provides instruction, guidance, monitoring and other services to domestic and overseas Group companies through the Risk Management Department and the Business Divisions. Group companies establish risk management policies in line with the policies of the Group and execute risk management independently.
Through the above measures, the Company executes proper risk management and ensures stable business operations of the entire Group.

Tokio Marine Group's Risk Management System

Crisis Management System

Tokio Marine Group has established the crisis management system to minimize economic losses and other impact incurred in an emergency and immediately restore ordinary business operations.
The Company has formulated the "Tokio Marine Group Basic Policies for Crisis Management" and the "Tokio Marine Group Crisis Management Manual" based on it, and has set forth the crisis management systems necessary for Group companies to carry out their own roles.
Group companies formulate crisis management policies in line with policies of the Group to develop crisis management systems that include establishing a department in charge of crisis management, decision-making procedures for emergency situations and securing the chain of command. In addition to developing the crisis management system during normal conditions, the department in charge of crisis management plays the role of secretariat for response during emergency situations, including reporting to the Company.
When conditions that may develop into an emergency situation arise, in addition to each Group company determining whether or not these conditions correspond to an emergency situation, the Company determines, if necessary, whether or not these conditions correspond to an emergency situation for the Group. This system enables the Company to properly instruct Group companies and make sure necessary actions as a Group can be made.