Corporate Governance

Management Philosophy

The Aozora Group has established a management philosophy consisting of its mission, vision, and key priorities.

Aozora Mission

Contribute to the development of society through the creation of new value-added financial services

Aozora Vision

Adapt to a rapidly changing world while remaining a trusted, valued and specialized financial service provider

Aozora's Key Priorities

  1. Provide specialized and value-added financial services
  2. Move quickly, while responding patiently and politely
  3. Prioritize teamwork and provide a more comfortable working environment
  4. Respect one's colleagues and support professional growth of all team members
  5. Learn from the past while adapting to and focusing on the future
  6. Take smart risks in new areas based upon our skills and experience
  7. Actively contribute to the sustainable growth of society

The objective of the Bank's corporate governance policy is to ensure management discipline and create a framework for enhanced oversight in order to conduct daily business operations based on its management philosophy.
For this purpose, the Bank continues to work toward a more transparent corporate governance structure by focusing on the proper establishment and operation of its governance framework as its primary management initiative.

(1) Separation of Management Oversight and Business Execution

Management adheres to the highest standards of compliance in all areas of business execution. Management identifies risks and assesses their potential impact on the Bank's business, maintaining a strong internal control system that ensures optimal transparency and a framework for the effective balancing of risk-return.
In order to improve efficiency through the separation of management oversight and business execution and transparency by establishing an appropriate corporate governance system, the Board of Directors, including multiple outside directors, determines basic management policy and management strategies, and supervises the execution of business operations. Executive officers, including the Representative Directors, conduct operations with authority delegated by the Board of Directors.
The Management Committee is the highest decision-making body for the execution of daily business, and comprises members from among the Executive Officers, who are approved and appointed by the Board of Directors. This structure improves the speed of decision-making, while at the same time the Executive Officers' Meeting, which comprises all Executive Officers, is held in order to share information. Various sub-committees are also established to improve efficiency of the execution of daily business.

(2) Supervision and Management Oversight

The Audit and Supervisory Board (ASB) and its members monitor and verify the execution of director duties, mainly from a legal perspective. Board-level committees, such as the Nomination and Remuneration Committee and the Audit and Compliance Committee, both of which mainly comprise outside directors, are entrusted by the Board of Directors to perform supplementary supervision and oversight with respect to representative directors and executive officers.

(3) Internal Control Systems

The Aozora Group is committed to developing efficient business operations in accordance with Internal Control Programs approved by the Board of Directors. In addition, the Internal Audit Division, which is independent of all business groups, conducts internal audits and reports its findings directly to the Chief Executive Officer (CEO) and the Board of Directors.

Board of Directors

The Board of Directors establishes important business policies and oversees the execution of duties by executive officers entrusted with daily business operations. Moreover, the Bank convenes "independent outside directors' meetings" comprised only of the four outside directors multiple times throughout the year to allow for the discussion and exchange of views on key business issues and management of the Board from an independent outside director's perspective.

Audit and Supervisory Board

The Audit and Supervisory Board formulates the Bank's audit policy and plan regarding the execution of duties by directors and executive officers in accordance with relevant laws and regulations. The ASB convenes all members to receive reports on important audit matters and discusses or resolves them as needed.

Nomination and Remuneration Committee

The Nomination and Remuneration Committee, the majority of which comprises outside directors, recommends candidates for Board and ASB members as well as other important positions. In addition, the Nomination and Remuneration Committee determines the remuneration of directors and executive officers and makes recommendations to each ASB member regarding their remuneration.

Audit and Compliance Committee

The Audit and Compliance Committee, which comprises outside directors, reviews the adequacy and effectiveness of matters relevant to the establishment of internal control systems, including internal and external audits, risk management, compliance, and credit audits.

an image about Internal Control Systems an image about Internal Control Systems

<Board of Directors' Membership Structure>

Ratio of outside directors
an image about 4 of 8 members 50%
Ratio of female directors
an image about 1 of 8 members 12.5%
Director's Length of Tenure
an image about Over 8 years: 1 Up to 6 years: 4 and 8 years: 3

The Bank determines the independence of outside directors and outside Audit and Supervisory Board Members in accordance with the standards set forth by the Tokyo Stock Exchange. All qualified outside directors and outside Audit and Supervisory Board Members are designated as independent.

Outside Director (4 members)

an image about Shunsuke Takeda

Outside Director (Independent)

Shunsuke Takeda

Expertise

  • Corporate management
  • Banking and finance
  • Financial accounting

Length of tenure

14 years

Board meeting attendance

100%

Aozora shares owned

11,892

Reason for appointment and expected role

Shunsuke Takeda has served as Director, Vice Chairman and CFO of ORIX Corporation and Chairman and Representative Executive Officer of Daikyo Incorporated and he has wealth of experience, credentials and deep insight as a top management of corporate institutions as well as extensive knowledge of M&A and venture capital business. He has appropriately supervised the management of the Bank as an Outside Director since June 2007.
The Bank, having high regard for his experience and capabilities, requests the continued appointment as Outside Director, as the Bank expects him to provide overall oversight and advice on the execution of duties by executive officers, with an objective viewpoint, toward the enhancement of the Bank’s corporate value over the mid- to long-term.

an image about Hiroyuki Mizuta

Outside Director (Independent)

Hiroyuki Mizuta

Expertise

  • Corporate management
  • Banking and finance

Length of tenure

8 years

Board meeting attendance

100%

Aozora shares owned

4,345

Reason for appointment and expected role

Hiroyuki Mizuta has served as Director, President and Representative Executive Officer of Resona Holdings, Inc. and Representative Director and Chairman of TOKYO TOWER Co., Ltd. and he has wealth of experience, credentials and deep insight as a top management of corporate institutions in the banking and non-financial sectors, as well as extensive knowledge of banking retail business and corporate finance business. He has appropriately supervised the management of the Bank as an Outside Director since June 2013.
The Bank, having high regard for his experience and capabilities, requests the continued appointment as Outside Director, as the Bank expects him to provide overall oversight and advice on the execution of duties by executive officers, with an objective viewpoint, toward the enhancement of the Bank’s corporate value over the mid- to long-term.

an image about Ippei Murakami

Outside Director (Independent)

Ippei Murakami

Expertise

  • Corporate management
  • Financial accounting

Length of tenure

7 years

Board meeting attendance

100%

Aozora shares owned

8,415

Reason for appointment and expected role

Ippei Murakami has served as President and Representative Director of Nisshin Seifun Group Inc. and Chair of the Board of Trustees of Kwansei Gakuin University and he has wealth of experience, credentials and deep insight as a top management of corporate institution and educational institution, as well as extensive knowledge of corporate finance and accounting. He has appropriately supervised the management of the Bank as an Outside Director since June 2014.
The Bank, having high regard for his experience and capabilities, requests the continued appointment as Outside Director, as the Bank expects him to provide overall oversight and advice on the execution of duties by executive officers, with an objective viewpoint, toward the enhancement of the Bank’s corporate value over the mid- to long-term.

an image about Tomonori Ito

Outside Director (Independent)

Tomonori Ito

Expertise

  • Banking and finance

Length of tenure

7 years

Board meeting attendance

100%

Aozora shares owned

2,000

Reason for appointment and expected role

Tomonori Ito, after having experience in the domestic/global financial institutions, has served as Adjunct Professor of Department of International Corporate Strategy at Hitotsubashi University Business School and he has wealth of experience and credentials in the global finance business and deep insight as Professor of a business school, as well as extensive knowledge of investment banking business including M&A. He has appropriately supervised the management of the Bank as an Outside Director since June 2014.
The Bank, having high regard for his experience and capabilities, requests the continued appointment as Outside Director, as the Bank expects him to provide overall oversight and advice on the execution of duties by executive officers, with an objective viewpoint, toward the enhancement of the Bank’s corporate value over the mid- to long-term.

Outside ASB Member (2 members)

an image about Kiyoto Hagiwara

Outside ASB Member (Independent)

Kiyoto Hagiwara

Expertise

  • Banking and finance

Length of tenure

6 years

Board meeting attendance

100%

ASB meeting attendance

100%

Aozora shares owned

3,700

Reason for appointment

Kiyoto Hagiwara has served as an Auditor at the Bank of Japan and is qualified for the responsibilities as an outside Audit and Supervisory Board Member because he has substantial experience and expertise in the finance and banking business, and his position is independent from the day-to-day management responsibilities of the operations and activities of the Bank.

an image about Toraki Inoue

Outside ASB Member (Independent)

Toraki Inoue

Expertise

  • Corporate management
  • Financial accounting

Length of tenure

5 years

Board meeting attendance

100%

ASB meeting attendance

100%

Aozora shares owned

Reason for appointment

Toraki Inoue was formerly a Worldwide Partner at Arthur Andersen and is qualified for the responsibilities as an outside Audit and Supervisory Board Member because he has substantial experience and expertise as a public accountant and accounting expert, and his position is independent from the day-to-day management responsibilities of the operations and activities of the Bank.

Inside Director (4 members)

an image about Kei Tanikawa

Representative Director and President,
Chief Executive Officer (CEO)

Kei Tanikawa

Expertise

  • Corporate management
  • Banking and finance

Length of tenure

3 years

Board meeting attendance

100%

Aozora shares owned

14,951

Reason for appointment

Kei Tanikawa has been engaged in a variety of banking businesses such as corporate banking business and financial institutions business and he has made a considerable contribution to the corporate management as Executive Officer (since July 2012), supervising various groups/divisions. He has deep insight in financial businesses as well as extensive experience and prudent judgment.

an image about Koji Yamakoshi

Representative Director and Deputy President

Koji Yamakoshi

Expertise

  • Banking and finance

Length of tenure

1 year

Board meeting attendance

100%

Aozora shares owned

2,125

Reason for appointment

Koji Yamakoshi has been engaged in a variety of banking businesses such as specialty finance business and he has made a considerable contribution to the corporate management as Executive Officer (since July 2012) and subsequently Head of Specialty Finance Group and Head of Corporate Banking Group. He has deep insight in financial businesses as well as extensive experience and prudent judgment.

an image about Hideto Oomi

Representative Director and Deputy President

Hideto Oomi

Expertise

  • Banking and finance

Length of tenure

Board meeting attendance

Aozora shares owned

3,339

Reason for appointment

Hideto Oomi has been engaged in a variety of banking businesses such as corporate banking business and corporate strategy and he has made a considerable contribution to the corporate management as Executive Officer (since July 2016), supervising various groups/divisions. He has deep insight in financial businesses as well as extensive experience and prudent judgment.

an image about Tomomi Akutagawa

Director, Senior Managing Executive Officer

Tomomi Akutagawa

Expertise

  • Banking and finance
  • Financial accounting

Length of tenure

2 years

Board meeting attendance

100%

Aozora shares owned

4,900

Reason for appointment

Tomomi Akutagawa has been engaged in a variety of banking businesses such as financial management and she has made a considerable contribution to the corporate management as Executive Officer and Deputy CFO (since July 2014) and subsequently Head of Corporate Strategy Unit and CFO. She has deep insight in financial businesses as well as extensive experience and prudent judgment.

Inside ASB Member (1 member)

an image about Satoshi Hashiguchi

Standing ASB Member

Satoshi Hashiguchi

Expertise

  • Banking and finance

Length of tenure

3 years

Board meeting attendance

100%

ASB meeting attendance

100%

Aozora shares owned

1,617

Reason for appointment

Satoshi Hashiguchi has been engaged in a variety of banking businesses such as corporate banking business, financial management and markets business and gained substantial experience as General Manager of the Internal Audit Division (since October 2013) validating internal control procedures from a position independent from the day-to-day management responsibilities of the operations and activities of the Bank.

  1. Board of Directors, Audit and Supervisory Board Members Expertise: 
    • Corporate management
    • Banking and finance
    • Financial accounting
  2. “Length of tenure” refers to service as of June 24, 2021.
  3. Board meeting and ASB meeting attendance refers to meetings held during FY2020.
  4. Number of Aozora shares owned as of June 25, 2021

Board of Directors, Audit and Supervisory Board, and Committee Meetings

Name of Committee

Chaired by

Members

Meetings held in
FY2020

Attendance

Board of Directors

Chairman or President

Directors, Audit and Supervisory Board Members

15

100%

Audit and Supervisory
Board (ASB)

Standing ASB Member

ASB Members

13

100%

Nomination and Remuneration Committee

Outside Director

Directors
(Outside Directors comprise majority)

7

100%

Audit and Compliance
Committee

Outside Director

Outside Directors

6

100%

Major Topics Discussed at Board of Directors Meetings

  • Progress of the Mid-term Plan
  • Business conditions amidst the COVID-19 pandemic
  • Business progress of GMO Aozora Net Bank
  • Progress report on the capital/business alliance with Orient Commercial Joint Stock Bank
  • Progress of discussions regarding systems reform
  • Cybersecurity reports
  • Quarterly integrated risk reports and integrated stress-test results reports
  • Legal compliance and risk management reports

Analysis and Evaluation of Board Effectiveness

The Bank works to further enhance the effectiveness of its Board of Directors through a continuous process (PDCA cycle) of analyzing and evaluating Board effectiveness each fiscal year as well as considering and providing solutions to new and existing issues. The Board of Directors strives to fulfill its fiduciary duties and accountability to the Bank's shareholders and performs self-evaluations of Board effectiveness aimed at promoting sustainable growth and enhancing the Bank's corporate value over the mid- to long-term. The Board continues to assess its management and oversight functions on the basis of the full utilization of directors' and Audit and Supervisory Board members' knowledge, expertise and experience, and takes into consideration the views of each Board member. The results of these self-evaluations are shared in thorough Board discussions.
The Board of Directors aims to ensure objectivity and transparency through the Board, 50% of which are outside members.
In addition to retaining an Audit and Supervisory Board, the Bank also has a Nomination and Remuneration Committee, which mainly comprises outside directors and is also chaired by an outside director, as well as an Audit and Compliance Committee, which is comprised of only outside directors. Both committees act to complement and check the oversight of executive officers including representative directors.
Moreover, the Bank convened three outside directors' meetings throughout FY2020 to allow for the discussion and exchange of views on key business issues, including Aozora’s executive structure and the operations of the Board of Directors, from an independent outside director's perspective. Board of Directors meetings involved confirming the progress of the newly developed Mid-term Plan, receiving reports regarding business conditions amidst the COVID-19 pandemic while making sure those topics discussed at Board of Directors meetings were properly reflected in the Bank’s management, and substantive discussions regarding the development of the FY2021 Business Plan that took place over the course of several sessions.
In FY2020, the Board assessed that its roles and responsibilities were properly fulfilled under the aforementioned framework through constructive discussions and exchange of ideas on important issues including business strategy as well as the proper oversight and monitoring of management executives. The Board also assessed that overall Board management was proper and effective.
Going forward, the Bank will strive to make the Board's roles and responsibilities more effective and proper by utilizing committees under the Board as well as the outside directors' meeting.

Management Committee

The Management Committee comprises executive officers (including representative directors) specially appointed by the Board of Directors. The Management Committee convenes weekly and determines important matters related to the Bank's daily operations in accordance with the policies set forth by the Board. The Management Committee has the following subcommittees to which it delegates authority: ALM Committee, Integrated Risk Committee, Credit Committee, Investment Committee, CAPEX Committee, and Customer Protection Committee. Subcommittees have substantive knowledge and experience in various aspects of the Bank's business operations, as well as sound decision-making capabilities.

Name of Committee

Chaired by

Members

Meetings Held
in FY2020

Purpose

Management
Committee

CEO

Executive Officers appointed by the Board of Directors

51

Determine important matters related to daily business operations

Asset and Liability
Management Committee

CFO

President, Executive Officers in charge

13

Determine important matters regarding asset and liability management

Integrated Risk Committee

CRO

President, Executive Officers in charge

8

Establish risk management policies, monitor risk management framework, maintain proper internal governance, launch new businesses/products

Credit Committee

CCRO

President, Executive Officers in charge

125

Approve credit transactions and related business policies

Investment Committee

CCRO

President, Executive Officers in charge

37

Approve individual investment transactions, establish appropriate investment policies, ensure accurate understanding of the Bank's overall investment portfolio, build and maintain a secure and profitable portfolio

CAPEX Committee
(approval and management of IT-related proposals)

CTO

President, Executive Officers in charge

14

Approve and monitor IT projects required to realize Management Committee-approved business plans and strategies

CAPEX Committee
(approval and management of facilities-related proposals)

Head of Corporate Strategy Unit

President, Executive Officers in charge

8

Approve and monitor facilities-related proposals required to realize Management Committee-approved business plans and strategies

Customer Protection Committee

Head of Compliance and Governance Unit

Executive Officers in charge

25

Review customer protection framework in five areas: customer explanation management, customer support management, customer information management, outsourcing management and conflict of interest management

Policy and Procedure for Determining Director/Executive Officer Remuneration

In order to pursue its mission to "contribute to the development of society through the creation of new value-added financial services," Aozora recognizes the necessity of providing proper incentives and a work environment that allows successful and high-potential employees to perform their duties consistently while maintaining high morale, motivation, and pride.
To this end, the Bank has designed a remuneration system based on the following basic policy.

  1. Remuneration framework in line with the Bank's vision
    • The Bank aims to build a compensation framework which reflects business performance in line with its objectives and values.
  2. Remuneration framework appropriately reflecting the Bank's performance.
    • The Bank's remuneration framework is based on "pay for performance" and reflects the Bank's commitment to sustainable growth, sound risk-taking through appropriate risk management, compliance, and customer protection.
  3. ‌Remuneration framework serving the interests of shareholders and other stakeholders
    • The Bank has adopted a remuneration framework that is consistent with the values of its shareholders and other stakeholders.
  4. Remuneration methodology that guarantees effective governance
    • The Bank ensures that remuneration decisions are made with full transparency and free from any specific influence.

Policy on Determination of the Amount or Calculation Method of Remuneration for Directors

In order to ensure that the process for determining individual directors' remuneration is transparent, independent, and impartial, the Nomination and Remuneration Committee, which mainly comprises outside directors authorized by the Board of Directors, decides the amounts payable to each director based on the Bank's policy of deciding the remuneration of directors as approved by the Board in accordance with the Committee's own discretionary findings.

The membership of the Nomination and Remuneration Committee is as follows:

  • Chaired by: 

    Shunsuke Takeda, Outside Director

  • Member: 

    Tomonori Ito, Outside Director

  • Member: 

    Kei Tanikawa, President and Representative Director

In principle, the Bank pays fixed-base remuneration, performance-based bonuses, and equity compensation type stock options to full-time directors and only fixed-base remuneration to outside directors.

Base Remuneration

Base remuneration comprises a fixed amount which varies by type of position (full-time or part-time), job title, and responsibilities. Before determining base remuneration, data from an outside specialized agency is used to determine whether the level of base remuneration is appropriate.

Bonus (Performance-based Remuneration)

Bonus amounts are initially set at the equivalent of 40% of the individual's basic remuneration amount (the "Base Bonus Amount"). The Nomination and Remuneration Committee then decides the amount of individual bonuses (performance-based remuneration) by applying a rate within a predetermined range of 0% to 250% of the Base Bonus Amount for every full-time director while considering the key performance indicators of the fiscal year as shown below. Specifically, the Nomination and Remuneration Committee decides the rate and bonus amount by considering the following key performance indicators and the Bank's overall performance during the relevant fiscal year.

  • Achievement rates of Business Profit and Net Earnings
  • Achievement rates of KPI (Key Performance Indicators) such as OHR (Over-head Ratio), ROE (Return on Equity) and ROA (Return on Assets)
  • Achievement and maintenance of Capital Adequacy Ratio
  • Assessment of undue risk and occurrence of serious compliance violations
  • Implementation and introduction of initiatives and strategies from a mid- to long-term perspective, including the launch of new businesses

Among the aforementioned performance indicators, the fundamental indicators of the Bank’s business results are business profit and net earnings, while the key performance indicators, OHR, ROE, ROA and Capital Adequacy Ratio, are the main indexes for tracking the progress of the Bank's Mid-term Plan. The achievement rates of these indicators, therefore, are taken into account as quantitative evaluation criteria for determining bonus amounts. In order to encourage not just short-term results but also mid- to long-term business initiatives, the Bank also fully considers qualitative evaluation criteria such as undue risk-taking, the occurrence of serious compliance violations, and the implementation/introduction of initiatives and strategies from a mid- to long-term perspective, including the launch of new businesses.
The targets and results of indicators tied to performance-based remuneration paid in FY2020 are stated below.

Targets*(consolidated)

Results (consolidated)

Business profit

35.0 billion yen

42.3 billion yen

Net earnings

36.5 billion yen

28.1 billion yen

OHR

50%

55.8%

ROE

9%

6.4%

ROA

0.8%

0.5%

Capital adequacy ratio

10%

10.29%

  • *Previous Mid-term targets (for FY2018-2020) announced at the beginning of FY2019

Equity Compensation Type Stock Options

The Nomination and Remuneration Committee discussed the proper ratio of cash remuneration to equity compensation type stock options in order for stock options to be one of the healthy incentives to promote sustainable growth, and set the rate at 25% of base remuneration amount, with the exact number of stock options to be determined based on a resolution by the Board of Directors in accordance with the Equity Compensation Type Stock Options Manual.

Full-time Director Remuneration Structure

an image about Full-time Director Remuneration Structure an image about Full-time Director Remuneration Structure

Policy on Determination and Calculation of ASB Member Remuneration

ASB members discuss and determine individual remuneration amounts in consideration of deliberations and proposals made at Nomination and Remuneration Committee meetings. ASB members only receive fixed base remuneration in accordance with the policy below.

Base Remuneration of ASB Members

Base remuneration comprises a fixed amount which varies by type of position (full-time or part-time), assigned audit duties, director remuneration, etc. Before determining base remuneration, data from an outside specialized agency is used to determine whether the level of base remuneration is appropriate.

Remuneration of Directors and ASB Members (April 1, 2020-March 31, 2021)

Category

#

Remuneration in total
(million yen)

Base

Bonus

Stock options

Directors (excl. outside directors)

5

264

163

64

37

Standing ASB member (excl. outside ASB members)

1

29

29

Outside directors and ASB members

6

80

80

  1. This includes one director who retired at the close of the 87th General Meeting of Shareholders on June 24, 2020.
  2. Total amount of provisions for performance-based remuneration (bonuses) paid to executives (64 million yen) during the specified time period. However, while the amount of provisions for executive bonuses recorded in FY2019 totaled 70 million yen, the actual amount of bonuses paid in June, 2020 to four directors (excluding outside directors) for their execution of duties during FY2019 was 60 million yen.

Policy and Procedure for appointing Board of Directors and ASB Member candidates as well as appointment and dismissal of members of upper management including the CEO

Please click here to view page 28 of Aozora’s “Corporate Governance Report”.

While the banking sector continues to experience significant changes in the operating environment, the Bank remains committed to the sustainable enhancement of its corporate value. In keeping with this commitment, the Bank continues to promote sound risk-taking through proper awareness of the business environment, including potential risks and the implementation of effective risk controls. The Aozora Group has established a risk appetite framework for business management that clearly identifies the type and level of risks (risk appetite) the Bank takes to achieve its business strategies and financial plan.
In recognition of the expectations of the Aozora Group’s stakeholders, including its shareholders and customers, as well as changes in the external operating environment, the Bank’s Mid-term Plan and yearly business plans are comprehensively developed in consideration of the Bank’s profitability, balance of risk-taking, resource diversification, and the results of stress tests.
Business operations are executed based on the Bank’s management plan by the Management Committee and various other committees in accordance with the Bank’s governance policy. In addition, these committees conduct monitoring of operational conditions while confirming the progress of the plan and awareness of the operating environment, which is also utilized in later business operations.

an image about Risk Appetite Framework an image about Risk Appetite Framework

Role and Function

In order to support the Aozora Group’s goal of providing value-added financial services, the Bank's Internal Audit Division is situated independently from all other units/groups and objectively examines and evaluates whether the internal control systems of the Group are functioning properly and effectively while offering constructive and practical recommendations for improvement.
Internal audits are conducted in line with the audit plan, which is formulated according to the Annual Internal Audit Plan approved by the Management Committee and the Board of Directors each fiscal year. When formulating the audit plan, the Bank considers the frequency and intensity of audits based on the type and degree of inherent risk within each business unit and the status of internal controls. In consideration of the importance of risk management, the Bank also conducts system audits, cross-sectional target audits, and J-SOX audits related to financial reporting.
The Internal Audit Division reports directly to the Chief Executive Officer and shares periodic reports regarding the Group’s internal controls. It also provides an independent evaluation of the internal management system by presenting audit results to the Management Committee monthly and a summary of the audits directly to the Audit and Compliance Committee and the Board of Directors semi-annually. Furthermore, the Internal Audit Division cooperates with the Audit and Supervisory Board, its members, and external auditor by directly exchanging information and opinions, including the aforementioned audit reports and audit schedules, in order to better achieve the purpose of the internal audits.

Efforts to Improve Audit Effectiveness

The Bank's internal audits are conducted on a risk basis in accordance with the IIA's (Institute of Internal Auditors) international standards. In addition to a yearly internal quality assessment, the Internal Audit Division periodically undergoes an external quality assessment by a third-party organization in order to further improve the Bank’s internal audit system.
In order to improve the effectiveness of its auditors, the Internal Audit Division conducts ongoing external recruitment of auditors with a high level of expertise in areas such as the active utilization of data analysis as well as digital transformation. In addition, the Internal Audit Division supports and encourages its employees to obtain professional certifications, such as becoming a Certified Internal Auditor (CIA) and Certified Information System Auditor (CISA).

Internal Audit System

an image about Internal Audit System an image about Internal Audit System