Risk Management

Approach and Policies

The Nomura Real Estate Group is aware that establishing a basic policy on risk management and ensuring the soundness of management through appropriate risk management and operations are key management issues.
Accordingly, the Group established a basic policy and specifies risk categories and management and operational structures in its Risk Management Regulations. In addition, the Risk Management Committee was established in accordance with these regulations. The Committee conducts regular risk monitoring, assessment and analysis, takes preventive measures, responds at the time of occurrence, implements countermeasures to prevent reoccurrence after the occurrence of a risk, and provides necessary guidance and advice to Group companies.

Risk Management Regulations

The Group established the Risk Management Regulations to set forth fundamental matters relating to risk management and perform appropriate risk control and operations. The Regulations set forth the basic policy on risk management, identify key risks, and specify management and operational structures and so on.

【Key Risks】
・Risks likely to have a major impact on Group management
・Risks likely to have a major impact on society
・Risk of litigation or other serious pr
・Other major risks that should be managed by the Group
・Risks relating to changes in the business environment
・Risks relating to changes in financial markets
・Risks relating to natural disasters
・Risks relating to compliance
・Risks relating to governmental responses
・Risks relating to reputation
・Risks relating to quality
・Risks relating to Internet and Intranet
・Risks relating to data breaches
・Risks relating to information systems
・Risks relating to anti-social forces
・Risks relating to labor management
・Risks relating to human rights and harassment
・Risks relating to fraud by employees, and other compliance matters


Risk Management Committee

To deliberate on key risks, Nomura Real Estate Holdings established the Risk Management Committee, which comprises directors, executive officers, and others from the Company and Group companies designated by the Board of Directors, separately from the Audit & Supervisory Committee and the Internal Audit Department. The Committee meets twice a month to monitor, assess, and analyze risks in accordance with the Risk Management Regulations and Regulations on Deliberative Bodies. The Committee also deliberates on preventing the occurrence of risks that the Group encounters in conjunction with corporate management and business development and on responses and countermeasures for the prevention of reoccurrence when risks do occur.
In addition, the Group Risk Liaison Committee, made up of directors, executive officers, and others of Group companies appointed by the chairman of the Risk Management Committee (executive officer), shares information on intra-Group risks and response policies. The Risk Management Committee and Group Risk Liaison Committee each meet, in principle, every other month and at other times as necessary and report on the details of their deliberations to the Board of Directors at least once every three months.
Individual Group companies have also established committees on risk management and conduct appropriate risk management according to the details of their particular business operations.

Compliance system and risk management system

Risk Management Relating to Society and the Environment

The Group is also aware of risks relating to social and environmental issues. The Risk Management Committee deliberates on significant events and issues relating to society and the environment as well as countermeasures and reports on the details of its deliberations to the Board of Directors at least once every three months.
The Committee also reports on the details of its deliberations to the CSR Committee, which is made up of directors and others from Nomura Real Estate Holdings and Group companies and is chaired by the Executive Vice President and Group COO of Nomura Real Estate Holdings.

Risk Management Process

The Group established the Risk Occurrence Information Transmission Guidelines in accordance with the Risk Management Regulations and has established procedures for promptly conveying information relating to unforeseen events to management.

Timely Disclosure System

Ensuring Risk Management

The Group carries out risk management in accordance with the Risk Management Regulations.
The Risk Management Committee and the Group Risk Liaison Committee discuss risks that occurred in each business as well as responses and countermeasures for the prevention of recurrence. It then provides appropriate guidance and advice to Group companies. In addition, the Committees disseminates significant information to employees through e-learning, the intranet and other means, and provides risk management training to officers.

Inquiries Desks

Inquiries Desks have been set up at Nomura Real Estate Holdings and at each Group company in order to respond quickly and appropriately when a problem with a product or service is found. Significant information gathered by the Inquiries Desks is reported to the Risk Management Committee and shared within the Group, and measures to prevent reoccurrence are implemented.

Business Continuity Plan Established for Emergencies

BCP Formulation

The Group formulated a business continuity plan (BCP) and in anticipation of a major earthquake in the Tokyo Metropolitan region. The plan provides for the chain of command during an emergency and the allocation of duties for the continuation of business as well as the establishment of structures that can respond even at night and on days off and holidays so that the impact of a disaster can be minimized.
In addition, a disaster response headquarters establishment drill is conducted once a year with the president of Nomura Real Estate Holdings as the head and other members of the Disaster Response Headquarters participating. During the drills, implementation of initial responses specified in the business continuity plan (ensuring the safety of officers and employees, establishing a chain of command, and restoring business) is confirmed and other actions are taken to prepare for a disaster or other emergency.

Confirming the Safety of Officers and Employees

The Group introduced a safety confirmation system that uses the Internet and emails to rapidly determine the status of harm to and safety of officers and employees during emergencies, and conducts safety confirmation drills for Group officers and employees four times a year.


Risk Management Committee and Group Risk Liaison Committee meetings held

Items FY 2018
Number of meetings held 12

Implementation of safety confirmation drills (four times a year)

Items FY 2018
Response rate 100%