Governance Risk Management
Risk Management Structure
In order to realize the basic policy on asset management as stipulated in Samty Residential’s Articles of Incorporation, the Asset Management Company has established the Asset Management Guidelines and the Regulations on Transactions with Interested Parties, Etc. in line with Samty Residential's Articles of Incorporation, etc. Accordingly, it has formulated an investment policy, rules on transactions with interested parties, etc., and a basic policy, etc. on acquisition and sale of investment properties as well as management of investment properties and such. By complying with these rules, the Asset Management Company strives to manage risks associated with investment management.
In addition, in its Risk Management Regulations, the Asset Management Company stipulates its basic policy and promotion system for risk management. These regulations define a series of major risks to be managed by the Asset Management Company, including compliance and other risks, market risk, credit risk, counterparty risk, liquidity risk, management risk, administrative risk, and system risk, and define risk manager roles within each department.
The adequacy and effectiveness of the risk management system is regularly verified by the Internal Audit Department.
Information Security
Based on its Information Security Policy and Regulations on Information Security, etc,, the Asset Management Company takes necessary measures for the safe management of information, including the prevention of information leakage, loss, damage, or theft.
The Head of the Business Management Department is the Chief Information Security Officer, and information security managers are appointed in each department to monitor information assets and provide guidance on the safe management of information. The status of information asset management is regularly monitored and the management structure is continuously reviewed to ensure an adequate security level.
Contingency Plan
The Asset Management Company has formulated a Contingency Plan to guide its actions during emergency situations, putting in place a system to minimize interruptions in operations due to unforeseen circumstances and to quickly and efficiently restore necessary operations.
The Contingency Plan stipulates the establishment of a security headquarters or disaster response headquarters and describes first response and general emergency response actions to be taken by the organization, providing for how the organization will respond to disasters, achieve recovery, and ensure business continuity.
AML and CFT Actions
As a company that handles financial instruments, the Asset Management Company has set anti-money laundering and countering the financing of terrorism (AML/CFT) as an important management issue. Accordingly it has established the Basic Policy on AML/CFT, the Basic Regulations on AML/CFT, and other relevant rules.
In addition, based on the results of periodic AML/CFT risk assessments and other factors, the Asset Management Company works to continuously improve its AML/CFT-related systems, operations, and other initiatives through the PDCA cycle.