ブックメーカー違法 Management

Based on the recognition of the importance of ブックメーカー違法 management, top management is actively involved in the ブックメーカー違法 management process, and systems are in place for verifying and monitoring the effectiveness and appropriateness of this process. Specifically, the group-wide basic policies for ブックメーカー違法 management and the ブックメーカー違法 appetites are determined by the Management Committee and authorized by the Board of Directors. After that, the status of ブックメーカー違法 management based on these policies and ブックメーカー違法 appetites is reported to the Board of Directors by the Group CRO.

If the outlooks for the operating environment and risks change drastically from the assumption in the beginning of the fiscal year, we will review the ブックメーカー違法 Appetite for the entire group in a timely and appropriate manner with approval by the Board of Directors. Furthermore, SMBC Group is strengthening groupwide ブックメーカー違法 management systems through the Group CRO Committee and the Global CRO Committee.

The Basel Committee on Banking Supervision’s corporate governance principles for banks recommends “three lines of defense” as a framework for ブックメーカー違法 governance. Based on this framework, SMBC Group has clarified the roles and responsibilities of each unit.

In order for SMBC Group to realize and maintain a sustainable growth in corporate value as a Top Tier Global Financial Group, each one of our colleagues should think and judge on their own if their actions meet the expectations and requirements of customers, markets, and other stakeholders, not just if they are compliant with laws and regulations. SMBC Group has established the “Behavioral Guideline on Compliance and ブックメーカー違法” for every colleague to hold onto as a “keystone” of their daily business, providing a proper way to look at compliance and ブックメーカー違法. Relevant concrete measures to foster a sound ブックメーカー違法 culture include internal surveys for monitoring the compliance awareness and ブックメーカー違法 sensitivity of our colleagues, as well as communication of messages from top management to employees, internal training, and a commendation system.

SMBC Group has introduced a ブックメーカー違法 Appetite Framework for controlling group-wide risks that clarifies the types and levels of ブックメーカー違法 that we are willing to take on or are prepared to tolerate in order to grow profits (ブックメーカー違法 appetite). It is one of two pillars of our business management alongside business strategies. In formulating business strategies and related matters, particularly significant management risks are identified as “top risks,” and ブックメーカー違法 analysis is conducted through stress testing. Taking into account the potential impact should risks materialize, the Board of Directors sets the ブックメーカー違法 appetite for each ブックメーカー違法 category, such as credit ブックメーカー違法, market ブックメーカー違法, and liquidity ブックメーカー違法. Furthermore, individual ブックメーカー違法 appetites have been established for each business unit based on the business's strategy and the overall ブックメーカー違法 appetite of SMBC Group to facilitate appropriate management.

The outlooks for the operating environment and risks and the ブックメーカー違法 appetite situation are monitored throughout the course of the fiscal year. Measures and business strategies are revised in a flexible manner.

Additionally, in light of rising geopolitical risks, cyberattacks, and the increasing frequency of natural disasters, each posing a serious threat to business operations, we are working to strengthen our operational resilience. This includes not only our existing ブックメーカー違法 management framework, but also the ability to maintain critical operations and recover swiftly in the event of a disruption.

See the Appendix for more information on top risks.

At SMBC Group, in addition to detecting early signs of ブックメーカー違法 through the collection of information on external events and other factors, we use stress testing to analyze and comprehend the impact of changes in economic or market conditions on SMBC Group's businesses, in order to plan and execute forward-looking business strategies. Based on the identification of top risks and discussions with experts, we develop scenarios that assume severe conditions such as deep recessions or market turmoil, in order to assess the Group’s ブックメーカー違法-taking capacity and verify whether financial soundness can be maintained under stress.

In addition, when significant ブックメーカー違法 events occur during the fiscal year, we swiftly conduct stress tests to explore appropriate response measures.

Beyond these assessments, we also carry out detailed stress testing for credit, market, and liquidity risks, using the results to inform and revise our ブックメーカー違法-taking policies.

A ブックメーカー違法 register is formulated for the purpose of realizing more sophisticated ブックメーカー違法 governance and enhancing business units’ ブックメーカー違法 ownership. In formulating these registers, business units communicate with ブックメーカー違法 management departments to identify the risks present in their business, and these risks are reflected in business strategies after they have been evaluated and the adequacy of measures for controlling them has been verified.