Governance (G)

Risk Management

Definition of risks

Definition of risks

Basic stance on risk management

With regard to the management of our company’s inherent risks, we take the following basic stance in our work, with the goal of reinforcing our dual duties of loyalty and care as an asset management fiduciary.

  • 1. Our company, as an asset management firm, is solely devoted to that business, and the greatest risk we face is the risk of degradation of our reputation due to a decline in the value and confidence placed in us by the investment corporations and their investors (including potential investors in the securities market in general), who trust us with the management of their assets.
  • 2. It is essential that we carefully and rigorously manage all risks, including risks regarding the handling and management of assets, operational risks, and legal and compliance risks, as risks such as these are a major potential cause of such declines in value and confidence.

With regard to the management of operational risks of investment corporation assets, we take the following basic stance in our work, with the goal of reinforcing our investment management capability while striving to protect the assets under our management.

  • 1. The primary investment target being real estate, it should be noted that owning real estate or similar specific assets, as opposed to traditional financial assets, comes with its own set of risks, on top of the general risks associated with asset management, such as so-called “market risks.” It is necessary to execute sufficient analysis and countermeasures when handling these kinds of real estate risks.
  • 2. In the management of these risks, we distinguish those risks that can lead to returns from risks that need to be eliminated or mitigated, and we act in a safe and reliable manner with regard to the latter category of risk.
  • 3. We will not engage in any action that deviates from the basic stance set forth in the preceding paragraph or that neglects strict risk management and the appropriate acquisition of profits.
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