In the volatile, uncertain, complex, and ambiguous (VUCA) world, the Group needs to look forward and address risks continuously. Also, the portfolio of the Group is being transformed by the full-fledged entry into the nursing care business and the expansion of overseas business. In response to increasingly diverse and complex risks, the Group recognizes the need to enhance Strategic Risk Management continuously.
In FY2017, under the Group CxO system, the Group CRO is promoting the practice of Strategic Risk Management and enhancing Strategic Risk Management further in Group-wide basis.
In the expanding overseas insurance business, the Group is constructing and enhancing the globally integrated ERM framework by measures such as sending staffs to Sompo International, which manages our European and North American business, and to other major places of operation, fostering close relationships with overseas entities through personnel exchanges, and having management of overseas entities to participate in the Group ERM and Internal Control Committee to incorporate their global expertise. In the nursing care & healthcare business, the Group is enhancing the risk management framework based on the characteristics of the nursing care business and constructing a framework to prevent material risk from occurring.
As an initiative to reinforce the cross-segment function, the Group CRO is constructing a system to control the Group’s risk portfolio proactively, through coordination with the Group CFO.
Furthermore, to embed ERM culture throughout the Group and strengthen the human resources that underpin Strategic Risk Management, the Group is enhancing the use of the ROR indicator in the performance appraisal system, sending a message from management and providing various training sessions tailored to the roles of employees.
* The Committee's name has changed to "Group ERM and Internal Control Committee" on April 1st, 2018.