2004 Fiscal Year Final Research Report Summary
Total Risk Management in Japanese Corporation - The analysis of the risk and the study of practical risk control method
| Project/Area Number |
15530275
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Business administration
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| Research Institution | Nihon Fukushi University |
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Principal Investigator |
TSUMORI Shinya Nihon Fukushi University, Faculty of Healthcare Management, Professor, 福祉経営学部, 教授 (60329761)
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| Project Period (FY) |
2003 – 2004
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| Keywords | Economic Capital / Unexpected Loss / Management System Risk / Execution Risk Management / Economic Profit / Finding the risk / Corporate Governance / Internal Control |
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| Research Abstract |
With the cooperation of 4 senior managers in insurance companies and general trading house (Sogo Shosha), I have completed this report.
The summary of the contents is as follows.
First, the definition of "risk" and "risk management" is shown. The definition of risk is divided in two categories, that is, "Management System Risk" and "Business Execution Risk". The biggest risk in the corporate management is the risk for their survival, or sustainability. For this purpose, three points must be discussed.
The first point is that corporations must have clear core-value and maintain the workable corporate governance system. Secondly, corporations must have a enough equity capital to cope with unexpected loss (economic capital). So, I have shown the calculation method of the economic capital in two ways.
Third point is Business Execution Risk Management in which individual risks are shown and assessed, then, the management method of individual risk is discussed. Individual risk must be managed as a separate risk and at the same time as integrated risk which is also discussed. "Internal Control" and "Enterprise Risk Management" introduced by COSO in USA have the same purpose in this respect which is also included in this discussion
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