Governance
Risk Management
Basic Policy
NBFM has formulated Risk Management Rules and Risk Management Guidelines for risks relating to investment management activities, and the Risk Management & Compliance Department, which oversees risk management, reports to NBF’s Board of Directors and NBFM’s Board of Directors about matters such as the status of risk management and improvement measures.
Risk Management Structure
NBFM has established Risk Management Rules and stipulated its basic approach to risk management, and with respect to items whose risks should be managed, it verifies whether risk monitoring is being conducted appropriately based on the Risk Management Guidelines at regular Risk Management Meetings held at least once every three months. Summaries of Risk Management Meetings are reported to both NBF’s Board of Directors and NBFM’s Board of Directors.
Risk Assessment
NBF and NBFM strive to prevent corruption of all kinds, including the prevention of bribery, elimination of anti-social forces, prevention of money-laundering, elimination of unfair business practices, and prohibition of insider trading. Furthermore, key risks are monitored at Risk Management Meetings and regularly reported on to NBF’s Board of Directors and NBFM’s Board of Directors.
Internal Auditing
Based on the Internal Auditing Rules, internal auditing is conducted each year, internal audit reports are prepared, and the CEO and Board of Directors receive reports, with the Compliance Officer serving as the senior officer for internal auditing activities. Internal auditing covers the activities of all departments, and it is planned and implemented from various perspectives, including the effectiveness and implementation status of the Code of Conduct and the implementation of policies to prevent corruption. To enhance and complement internal auditing functions, internal auditing activities may be outsourced to an external third party if approved by the Board of Directors. Since they are in fact outsourced to a third party, the perspective of external experts is included in the implementation of auditing.
BCP Measures
For the purpose of rapidly understanding disaster conditions and safety and implementing measures relating to disaster risks, drills are conducted twice a year in collaboration with a supplier (NBF Office Management Ltd.). Furthermore, disaster-related information such as evacuation shelters in the area, healthcare institutions, and information sites are collected in a Disaster Safety Handbook for owned buildings, and various evacuation drills are conducted.
In addition, there is always a reserve of three days’ worth of emergency provisions and other supplies if required.
Safety Confirmation
As part of crisis management, NBFM has introduced a safety confirmation system for the purpose of confirming safety and understanding disaster conditions in the event that a disaster occurs. Safety confirmation drills are conducted twice a year. In 2023, the participation rate was 100%.