1. ERM as a “Management Compass”
In an era of volatility, uncertainty, complexity, and ambiguity (VUCA), risk management’s role no longer simply entails taking measures to avoid loss. Increasingly, risk management acts as
a “navigator” that is close to the front lines and guides the Group in the right direction from the viewpoint of reducing opportunity loss.
Risk management’s role can be likened to a sophisticated compass used in a voyage across rough, unpredictable seas.
In other words, just as setting the best course requires correct understanding of the vessel’s current position, any dangers on the horizon, and the optimal direction in which to sail, ERM calls for understanding the Group’s financial position, accurately identifying the risks that need to be addressed, and moving forward with countermeasures.
Strongly focused on Group-wide transformation, the Sompo Holdings Group will realize “A Theme Park for Security, Health & Wellbeing.” Moreover, in the overseas insurance business, Sompo International will establish a truly integrated global platform. To support our transformation into a unique, progressive group, we are further evolving ERM beyond the confines of the insurance business.
2. Development of a Group-wide ERM Culture
Frontline operations must be able to respond flexibly and promptly to environmental changes. Therefore, it is important to develop a deeply rooted risk management culture throughout our organization so that every personnel can make decisions based on common criteria.
To ensure that every Group executive and employee understands ERM and acts in unison, we have formulated the ERM Vision, which explains the philosophy underpinning ERM as well as the state which ERM aims for. Based on the vision, we will encourage personnel in frontline operations to take concrete decisions and actions from the viewpoints of improving return on risk (ROR) and maintaining financial soundness (the economic solvency ratio (ESR)).
- Sompo’s ERM aims to support both enhancement of corporate value and contribution to society through appropriate risk management, achieving a mutually-beneficial relationship with all stakeholders.
- To this end, we:
- identify and control changing and diversifying risks appropriately to maintain Group’s financial soundness;
- provide services of the highest quality possible to our customers at fair and proper prices, and underwrite risks at appropriate premiums; and
- strive to construct an optimal business portfolio to realize “A Theme Park for Security, Health & Wellbeing.”
- Every employee and officer within the Group seeks to practice ERM up to the point that Sompo’s ERM becomes evaluated as No.1 in the world.