Risk Management
Risk Management Structure
JASDEC has established the Basic Policy on Risk Management, which defines basic aspects of risk management activities
by the JASDEC Group, to ensure the soundness and reliabilityof the JASDEC Group as a provider of settlement infrastructure.
Fundamental approach on risk management is outlined below.

Fundamental Approach to Risk Management

Ⅰ

JASDEC Group emphasizes the importance of risk management, and strives to instillawareness of this need in each department and office.

ⅡJASDEC Group, in order to ensure sound management of operations, takes comprehensive measures to manage each risk category, while ensuring that the increasing
diversity and complexity of operations is reflected appropriately in the risk management
structure.

Ⅲ

JASDEC Group shall periodically specify, analyze and assess risks, and will implement
countermeasures to the risk and monitor the status of risk management as necessary.
In the event that a risk materializes, JASDEC Group shall identify the cause, takemeasures to prevent recurrence and, with due consideration of available management
resources, endeavor to minimize the risk to the entire Group.

ⅣJASDEC Group shall remain highly cognizant of the particular importance of managing
information system risk, and shall endeavor to minimize this risk by using standardized
administrative procedures for planning, development and operations of information
systems, maintaining a consistent level of information system quality, and preparing arobust and up-to-date emergency response framework in case of disaster or damage.

ⅤDirectors and employees shall maintain a high awareness of risk, and endeavor toensure that business operations are carried out properly at all times, based on anunderstanding that the materialization of risks could significantly damage JASDEC
Group assets and bring about significant losses.

Ⅵ

Each department and office shall endeavor to conduct proper risk management, and if
a risk materializes in the course of conducting operations shall promptly report to theIntegrated Risk Management Council while taking necessary measures to minimize theimpact of the materialized risk.

Framework

Management
PolicyResponsibility- 09 -

We have established a Risk Committee where more thanhalf of the members do not engage in any operation of theGroup. We also have established the Integrated Risk
Management Council, which consists of the officers of theGroup and the heads of departments, under the chairmanshipof the Chief Risk Officer (CRO). In addition, JASDEC has

assigned departments to manage each risk category tomonitor and manage each specific risk under the overall
supervision of the Risk Management Department. By creatingthese organizations, we built a structure capable of providing
comprehensive risk management for the JASDEC Group.

Functional Framework of Risk Management
AdviceBoard of Directors

Risk Committee

Chair : CRO

Integrated Risk Management Council

ReportOfficer in Charge : CRORisk Management Department

President & CEODepartments in Charge ofSpecific Risk ManagementReportManaging Director
in charge ofInformation System risk

Managing Director
in charge ofBusiness Processing risk

Managing Director
in charge ofAccident & Disaster risk

Department
in charge ofInformation System risk

Department
in charge ofBusiness Processing risk

Department
in charge ofAccident & Disaster risk

ReportCheck & Balance

Departments Exposed to Specific Risks- 10 -

Audit

InternalAudit Office