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Comprehensive risk management

Basic approach

For the group as a whole, in order to ensure sound and stable corporate management and enhance our corporate value, appropriately managing risk and controlling risk are key issues relating to overall management, and therefore we are working to put in place risk management systems.

Mizuho Financial Group (the holding company) has established basic policies for risk management that are applicable to the group as a whole. In line with these basic policies, as a group we analyze risk comprehensively from multiple perspectives and adopt a variety of measures to strengthen and enhance the sophistication of our risk management system.

Comprehensive risk management systems

Amid the growing diversity and complexity of banking operations, financial institutions are exposed to various risks, including credit, market, information technology, legal, and settlement risks. We recognize that conducting operations tailored to the risks and managing such risks is a key issue relating to overall management. In order to implement our business strategies while maintaining our financial stability, we maintain comprehensive risk management and control measures.

Mizuho Financial Group maintains basic policies for risk management established by the Board of Directors that are applicable to the entire group. These policies clearly define the kinds of risks to be managed, set forth the organizational structure, and provide for the employee training necessary for appropriate levels of risk management. The policies also provide for audits to measure the effectiveness and suitability of the management structure. In line with these basic policies, we maintain various measures to strengthen and enhance the sophistication of our risk management system.

Each of our subsidiaries adopts appropriate risk management measures in line with their business domains and the scale and conditions of the associated risks, while Mizuho Financial Group controls risk management for the group as a whole.

The Risk Management Committee chaired by the Group CRO provides integrated monitoring and management of the overall risk for the group.

The Group CRO reports the risk management situation to the Board of Directors, the Risk Committee, and the Executive Management Committee regularly and as necessary. In addition, Mizuho Financial Group receives reports and applications for approval concerning the risk management situation from our core group companies and gives them appropriate instructions concerning risk management as necessary.

Each core group company maintains its systems for managing various types of risk, receiving reports on the status of risk at their respective subsidiaries, and gives them appropriate instructions concerning risk management as necessary.

We classify and manage the risks that arise in our businesses according to the various kinds of risk, including credit risk, market risk, liquidity risk, and operational risk. Moreover, in each of our group companies we adopt the same approach of managing risks, such as settlement risk, trust banking operations risk, and other risks appropriately given their nature.

In addition to managing each type of risk individually, we have established a risk management structure to identify and evaluate overall risk and to keep risk within limits that are acceptable.

In line with the basic policies relating to overall risk management established by Mizuho Financial Group, we are working to take even more proactive and sophisticated approaches to risk management.

Image: Risk Management Structure