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 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 (such as operational 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 Departments responsible for managing Group companies under their control(“Departments in charge”). 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

Tokio Marine Holdings Audit & Supervisory Board Members (Audit & Supervisory Board) ⇒ Board of Directors ⇒ Internal Control Committee / Management Meeting ⇒ GRSC / IER / Enterprise Risk Management (ERM) Committee ⇒ Risk Management Department/Departments in charge [Insurance underwriting risks] [Investment Risks] Market risks / Credit risks / Real estate investment risks [Operational Risks, etc.] Liquidity risks / Administrative risks / System risks / Information leakage risks / Legal risks / Reputational risks / Accident/disaster/crime risks / Personnel and labor risks / Other risks ⇒ lndicatstruction of policies, instruction/guidance/monitoring [Group Companies] Domestic non-life insurance business / Domestic life insurance business / International insurance business / Financial Services and Other Businesses ⇒ Reporting
  • *Investment Executive Roundtable

Crisis Management System

Tokio Marine Group has established a crisis management system to minimize economic losses and other impacts incurred in an emergency and immediately restore ordinary business operations.
The Company has formulated the “Tokio Marine Group Basic Policy for Crisis Management” and the “Tokio Marine Group Crisis Management Manual” based on the policy, 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. In fiscal 2021, we re-verified our Business Continuity Plan (BCP) and action plans for material risks and emerging risks, and work to address issues. We also conducted simulated training in preparation for natural disasters, cyberattacks and other risks to improve the effectiveness of our responses.