The Norinchukin Bank’s Management System
The Bank is both the national-level organization for Japan’s AFF cooperatives as well as an institutional investor that plays a major role in the financial and capital markets through investment of large amounts of funds in Japan and overseas. Naturally, the Bank adheres to decisions made within the Council of Delegates comprising representative members of all shareholders. At the same time, the Supervisory Committee and the Board of Directors, as stipulated by the Norinchukin Bank Act, are organized to share duties as well as coordinate the Bank’s decision-making, while taking into consideration the internal and external situations of the cooperatives.
Risk Appetite Framework (RAF)
The business environment surrounding financial institutions is changing radically. For the Bank to maintain its high soundness and continue to meet stakeholders’ expectations and perform its basic roles, the forward looking recognition of risks and the appropriate risk controls, as well as the risk taking in a disciplined manner, are increasingly important.
To implement such measures, the Bank has introduced the Risk Appetite Framework (RAF) for business administration. Under the RAF, the Bank aims to achieve the goals of the management plan and works to foster and disseminate a sound risk culture that supports its business administration framework.
The Bank’s RAF is a “framework for business administration leading to disciplined risk taking and optimizing the balance between risk and return” by clarifying the Bank’s management strategies, business strategies and expected return (types and amounts of return that are set as goals) and risk appetite (types and amounts of risks that the Bank is willing to take or are acceptable to the Bank, and optimal management resources) and managing them in an integrated manner. Under the RAF, with the aim of an optimal balance between risk and return, the Bank further improves its soundness while adjusting to changes in the surrounding environment.
Initiatives for Strengthening Internal Control
For the Bank to fulfill its fundamental mission as the central organization for Japan’s AFF cooperatives as well as its social responsibility, the Bank views the construction of management control systems as its highest priority. It has established basic policies for internal control to secure compliance with corporate ethics rules and relevant laws and regulations, and proper risk management and business activities.
To implement appropriate company-wide risk management, the Bank has formulated the Basic Policies for Risk Management. These policies identify the types of risks to be managed and the basic framework for risk management, including organizational structure and methodology. Based on the Basic Policies, the Bank is working on the management task of ceaselessly upgrading its risk management framework with the managerial goals to fully demonstrate its competitive edge and presence and fulfill its role adequately as a financial institution involved in the AFF industries, as well as food production and consumption; further reinforce the business base of its cooperative banking business; and realize stable returns to its members through the further evolution of its existing globally diversified investments.
Basic Policy on The Norinchukin Bank Governance
- About The Norinchukin Bank
- Message from the Management
- The Basic Mission of The Norinchukin Bank
- Our Businesses
- Medium-Term Management Plan
- Our Features
- Brand Message
- Corporate Outline
- Organization Diagram
- Code of Ethics
- Corporate Governance
- Global Network
- List of Group Companies
- UK Modern Slavery Act 2015 Transparency Statement
- The Equator Principles