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 the risks.
The Company promotes the development and enhancement and sophistication 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 bankruptcies in accordance with the “Tokio Marine Group’s Basic Policies for Integrated Risk Management”.
Among the various risks, the Company recognizes that insurance underwriting risks and investment risks are core risks that must be managed in 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 that arise pertaining to the Group’s business activities and strives to prevent the occurrence of or reduce these risks. Group companies establish risk management policies in line with the policies for risk management of the Group as a whole, and conduct risk management independently.
Through the above measures, the Company works to execute proper risk management and ensure stable business operations of the entire Group.
Tokio Marine Group's Risk Management System
Crisis Management System
Tokio Marine Group has established a crisis management system to minimize economic losses and other impact incurred in an emergency and quickly 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 the Group companies to carry out their own roles.
Group companies formulate crisis management policies in line with policies of the Group as a whole 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 a 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.
Consequently, when conditions that may become an emergency situation arise, a system that the Company determines whether they correspond to emergency situations or not as required in addition to decision-making at Group companies allows instructions to Group companies and the necessary response as a Group.