Third-party Risk Management

Basic Approach

At the Mizuho Financial Group, third–party risk is defined as "risk that emerges at the company or the group arising from third parties with which the company or the group has business contractual relations," and it is positioned as complex risk comprising each risk of market risk, credit risk, liquidity risk, and operational risk. Based on the importance of relations with third parties in the group's operations, the company recognizes risk pertaining to third parties as the risk of the company and the group itself, and we grasp, assess, and respond to risk appropriately from the perspectives of sound management, appropriate operations, customer protection, and business continuity, and thus ensure the proper execution of operations via third parties and other sound and appropriate operations. The Mizuho Financial Group oversees the third–party risk management of the group.

Third-party Risk Management Structure

Our Board of Directors determines the Mizuho group's basic matters pertaining to third–party risk management. The Risk Management Committee of Mizuho Financial Group broadly discusses and coordinates matters relating to basic policies in connection with third–party risk management, third–party risk operations, and third–party risk monitoring. The Group CRO of Mizuho Financial Group is responsible for matters relating to third–party risk management planning and operations. The Risk Management Department of Mizuho Financial Group is responsible for monitoring, reporting and analyzing liquidity risk, making proposals in connection with third–party risk, and formulating and implementing plans relating to third–party risk management.

The Mizuho Financial Group manages the third–party risk conditions of the entire group based on reports from the core group companies regarding third–party risk management. In particular, individual companies that account for a large part of the group's third–party risks establish their own basic policies, and the board of directors of the individual company determines important matters pertaining to third–party risk management.

Third-party Risk Management Method

As a third–party risk management method, we grasp third–party risk in a timely and accurate manner and respond appropriately through appropriate contracts with third parties, third–party assessment and monitoring, and we monitor any concentration of risks in particular corporate groups.

At the Mizuho Financial Group, the assessment and monitoring conditions of third–party risk and monitoring of any concentration of risks in particular corporate groups are reported to the business policy committees (Risk Management Committee), the Executive Management Committee, and the President & Group CEO on a regular basis.