We are working to further upgrade and strengthen our risk management systems, and we position the appropriate management of these risks as a management issue with the highest priority.We have prepared its Risk Appetite Statement. This statement sets forth the content of risks that the we undertake, and it takes account of business strategy and business targets, including the amount of capital and liquidity required under regulations, and the business environment.Fostering a sound risk culture is essential for us to maintain its social credibility and sustain its business activities. All employees, irrespective of their function or geographic location, must understand their specific responsibilities related to risk management, and actively work to manage risks. We aim to embed this risk culture throughout the firm through various training courses, a as well as company rules and regulations.

The Risk Appetite Statement is proposed by the Chief Risk Officer (CRO) and the Chief Financial Officer (CFO) and submitted for final approval to the Executive Management Board. The statement covers all types of risk that the bank is exposed to, including capital adequacy and balance sheet measures, liquidity risk, market and credit risk, operational risk, and model risk. With a basic policy of controlling risks that arise in the course of operations within the limits of risk appetite, the Executive Management Board or Integrated Risk Management Committee which has been delegated responsibility by the Executive Management Board, is responsible for deliberating and determining important matters pertaining to risk management.