Corporate Infrastructure / Social Value Creation

SMBC Group is advancing initiatives to further accelerate growth under its new vision established in FY2026. Meanwhile, the risks surrounding the Group are becoming increasingly diverse and complex, including escalating global geopolitical tensions, environmental changes accompanying the normalization of domestic monetary policy, inflation concerns and financial instability in various countries, and the threat of cyberattacks. 

Based on this risk awareness, the risk management division is working on four priorities to firmly support SMBC Group’s challenges.

First is the realization of risk-sensitive and highly resilient operations. In an environment of high uncertainty, having a framework capable of responding flexibly and appropriately to various risks is crucial. Through enhancing stress testing and early-warning monitoring, we will capture risk changes in a timely manner, leading to rapid impact analysis and agile review of business operations. We will also work on improving the effectiveness of our crisis response framework.

Second is the development of a risk management platform that supports business portfolio transformation. In line with our business strategies, such as expanding business in Asia and capital markets and strengthening asset-light businesses, we will enhance risk management and promote sound risk-taking through risk visualization and appropriate control.

Third is the thorough implementation of disciplined, integrity-based risk-taking. By embedding the “Behavioral Guideline on Compliance and Risk” into daily operations and enhancing individual risk ownership, we will cultivate a risk culture that leads to sound judgment and actions, even amid environmental changes and business expansion.

Fourth is the digitalization of risk management operations through the use of AI. The required scope and expertise for risk management are broadening further with business expansion. Through proactive AI utilization and system development, we will improve quality and speed, advancing the construction of a more sophisticated and efficient risk management framework. Furthermore, to promote the use of AI within SMBC Group, we will also work on ensuring appropriate governance.

Going forward, as Group CRO, I will continue to work on building a robust and forward-looking risk management framework, enhance risk ownership among officers and employees, and support the sustainable growth of SMBC Group.

In light of the recent heightened expectations from customers and society, the expansion and diversification of SMBC Group’s business, and the increasing complexity of the global market environment and regulations, there is a stronger imperative than ever to build a compliance framework that keeps pace with the times, looks further ahead, and evolves autonomously and continuously.

As Group CCO, what I consider most important is embedding a compliance culture rooted in “Integrity,” the starting point of the Five Values, which are shared across SMBC Group.

As the importance of principle-based discipline continues to grow within governance and compliance, corporate culture is playing an increasingly large role as the foundation supporting the effectiveness of governance and compliance. With adherence to laws and rules as a fundamental premise, I believe that having a basis for judgment enabling each officer and employee to choose the right action and embody “Integrity,” even in situations where these are not explicitly codified, is the bedrock supporting the trust of customers and society.

In SMBC Group’s new Medium-Term Management Plan, the Compliance Unit aims to support the advancement of the SMBC Group’s businesses both by enabling business growth and by safeguarding the Group, while also serving as the foundation for protecting and enhancing the Group’s corporate value and brand. Specifically, we will establish a proactive framework anticipating business changes and supporting business divisions in exercising their risk ownership. We will steadily strengthen an autonomous compliance framework that will serve as the foundation for the Vision of the new Medium-Term Management Plan: “Globally connected. Rooted in Japan. Your most trusted partner.”

Going forward, as the Group CCO, I will continue to work persistently on enhancing the compliance framework across the entire SMBC Group.

The business environment surrounding SMBC Group, globally, is becoming increasingly complex and uncertain, against the backdrop of ongoing geopolitical tensions and rapid technological innovation such as AI. In addition, SMBC Group is advancing the development of new business models, such as the promotion of Olive and Trunk and the strengthening of global CIB and S&T, as well as expanding business across the Group and regions across the globe. The new Medium-Term Management Plan positions the execution of these growth strategies and the establishment of a management foundation befitting a global top-tier financial group to support them, as one of the key management issues.

Under these circumstances, the role required by the Internal Audit Unit entails continuous review and further enhancement. Based on the mission of “contributing to the sustainable improvement of SMBC Group’s corporate value through high-quality audit activities,” the Internal Audit Unit aims to be a “Trusted Advisor,” providing objective assurance* and forward-looking insights and advice from a position independent from management and other departments. Towards that end, the Internal Audit Unit will deepen dialogue and information sharing with auditees, and utilize AI and data analysis to accurately detect signs of changing risks, providing audit activities that offer forward-looking insights for management and operational departments to take their next steps. We will also actively work to secure and develop diverse talent base with a high degree of expertise, and sharing best practices across the Group globally to improve audit quality.

By steadily accumulating these efforts, as Group CAE, I will devote my utmost efforts so that the Internal Audit Unit becomes a truly trusted partner for stakeholders, contributing to a management foundation in line with global standards and the sustainable improvement of corporate value.

* Objective assessment of the operations and processes of auditee departments from an independent standpoint