Types of RiskRisk AttributesUnderwritingRiskThe risk of incurring losses when economic conditions or the incidence of insured accidents fluctuate contrary to projections made at the time premiums were set.Asset ManagementRiskThe risk of incurring losses due to fluctuation in the value of assets under management (market risk, credit risk, and real estate asset management risk).Liquidity RiskThe risk of incurring losses when, due to a temporary increase in surrender value or an outflow of funds owing to a major disaster, Zenkyoren is forced to sell off assets at prices significantly lower than under normal conditions in order to secure the required funds.OperationalRiskThe risk of incurring losses due to inadequate internal control systems, or officers and employees either failing to follow appropriate procedures or being the cause of accidents and misconduct, etc.Information System RiskThe risk of incurring losses due to computer system failure, malfunction or flaw, or the misuse of information systems.Supervisory BoardBoard of DirectorsRisk Management DepartmentLegal and Compliance DepartmentChief ActuaryInternal Audit DepartmentLiquidity Risk SectionsOperational RiskBusiness Operation SectionsLiquidity RiskFinancing SectionsUnderwriting RiskUnderwriting SectionsAsset Management RiskInvestment SectionsInformation System RiskIT SectionsBoard of AuditorsFive Types of RiskRISK MANAGEMENT INITIATIVESRisk Management InitiativesTo bring a systematic approach to managing various risks, Zenkyoren has formulated a Basic Risk Management Policy, and works to handle risks consistently and appropriately.Under this basic policy, risks are classified and managed systematically as underwriting risk, asset management risk, liquidity risk, operational risk, and information system risk.Structurally, this has involved establishing a Risk Management Department, the department with overall responsibility for the management of Zenkyoren’s risk exposures, which in addition to overall supervision designates individual departments responsible for properly monitoring and controlling each type of risk.In addition, an Enterprise Risk Management (ERM) Committee has been established to raise the sophistication of ERM going forward.Risk Management SystemSurveyAuditReportAdviceReportInstructionInstruction07ANNUAL REPORT 2015