Internal Audit Structure
Internal audits are designed as an integrated process, independent from other business operations, for evaluating the extent to which internal control achieves its objectives in key areas, including appropriate risk management, efficient and effective business operations, reliable financial reporting and compliance with laws, regulations and internal rules. We conduct internal audits from an objective and comprehensive standpoint, independent of operational reporting lines, and offer advice and remedial recommendations in connection with any problems that may be identified. Through this process, internal audits assist the Boards of Directors of each of our group companies to fulfill their managerial duties efficiently and effectively.
In line with the Basic Policy for Internal Audit established by MHFG, our core group companies conduct internal audits, which include the auditing of their respective subsidiaries. In addition, with respect to the management of risks applicable across the Group, we coordinate internal audits throughout the Group to assess the risk management status of the Group as a whole.
Internal Audit Management Structure
Our Internal Audit Committee determines all important matters concerning internal audits. The committee is chaired by the President & Group CEO and is independent of our other business operations. Our Internal Audit Committee monitors and manages internal audits at our core group companies through internal audit reports submitted by such subsidiaries. Our Internal Audit Committee discusses and makes decisions regarding internal audits at our core group companies and submits the results, together with the results of their examination of the internal audit reports, to our Board of Directors.
MHBK and MHTB
MHBK and MHTB have also established Internal Audit Committees that are independent of their other business operations. The two banks have established internal audit departments and credit review departments (Credit Assessment and Auditing Office at MHTB) to conduct internal audits at their respective domestic and overseas business offices, head office departments and group companies. Specifically, the internal audit departments assess the suitability and effectiveness of business activities associated with compliance and risk management. The credit review departments (Credit Assessment and Auditing Office at MHTB) audit credit ratings and the status of credit management in addition to auditing the self–assessment of assets to verify the accuracy and suitability of matters deemed necessary to assure the soundness of assets.
Other Core Group Companies
Other core group companies have also established effective and efficient internal audit structures adapted to the characteristics of their respective businesses.
- Internal Audit Management Structure
- *The functions and responsibilities of the Internal Audit Group based on the three lines of defense
Internal Audit Department works as the third line and is independent of the first and second lines, as well as conducts assessment and examination of the operations of the first and second lines and is responsible for providing advice and rectification recommendations to settle issues.
(As of Jun 24, 2016)