Summary of the Internal Control System
In view of the highly public nature of its core insurance business, the T&D Life Group believes it is necessary to exercise appropriate control over its operational execution and to minimize the impact on Group management of unforeseen events in operational processes.
Based on this view, the boards of directors of T&D Holdings and its direct subsidiaries have decided to establish structures (internal control systems) as set forth under Article 362, Paragraph 4, Item 6 of the Company Law of Japan. The summary of the system is as follows.
1. Structure that ensures compliance with relevant laws and the articles of incorporation in business execution by directors, executive officers and employees
- The T&D Life Group has formulated a T&D Life Group CSR Charter and Compliance Code of Conduct and is promoting compliance based on them.
2. Structure to ensure efficient business execution by directors and executive officers
- The Board of Directors meets every month and as necessary.
- T&D Holdings has adopted the executive officer system to clarify the roles of supervision and business execution.
3. Structure to maintain and manage information related to business execution by directors and executive officers
- Information related to business execution by directors and executive officers is properly maintained and managed for a prescribed period by the department designated as responsible for maintaining the information under the Rules for Document Management.
4. Rules concerning the control of loss risks and other structures
- The T&D Life Group has formulated Group Risk Management Policies that provide the basics of risk management. In addition, the Group has created Rules on Group Crisis Response that form the basis for responding to high risk situations. Based on these policies and rules, risk management and risk response systems have been developed for the entire Group.
5. Structure to ensure appropriate business operations by the corporate group
- Based on the premise of protecting policyholders by ensuring the soundness and compliance of direct subsidiaries, T&D Holdings and the direct subsidiaries have concluded business management agreements aimed at maximizing the corporate value of the Group.
6. Structure to ensure effective auditing by the corporate auditors
- Corporate auditors take part in meetings of the Board of Directors and other important meetings, and receive operational reports from directors and executive officers.
