Risk Management

Basic Risk Management Policies

As a general trading company, the Sojitz Group is engaged in a diverse and globally dispersed range of businesses. Due to the nature of its businesses, the Group is exposed to a variety of risks. In compliance with its Basic Code of Corporate Risk Management, the Sojitz Group defines and categorizes risks, and manages them according to the nature of each risk. Measurable risks such as market risks, credit risks, business investment risks and country risks are measured and managed based on a calculation of risk assets. Risks that cannot be quantified, such as legal risks, compliance risks, environmental and social (human rights) risks, funding risks, disaster risks and system risks, are managed in the same manner as measurable risks, with the status of the risks and other issues being reported to management based on the Risk Management Policy and Plan formulated by the executive officers responsible for managing those risks.

Risk Management System

Sojitz continues to take necessary steps to enhance and expand its risk management system. To enhance risk management in operations and spread awareness throughout the entire Group, the Risk Management Planning Department plans and establishes overall rules, systems and risk management policies, measures risks and manages country risk. The Risk Management Department quickly and meticulously examines and monitors individual business investments. In addition, the Controller Offices examine credit, and long and short inventory position transactions, and support structuring of project proposals by moving risk management to the front lines and expediting the sharing of information.

 

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