P.75 Risk Management (1)

Risk Management Corporate Governance

Risk Management

Risk Management Structure In order to construct and ensure the functioning of an inter- nal control structure within the TBS Group, the TBS Group Corporate Activities Committee chaired by the president has been put in place to achieve appropriate and efficient business execution and to maintain and increase corporate value as a corporate group. Specific techniques for risk management are overseen and promoted by the TBS Group General Risk Management Committee, which was established as a subcommittee overseen by the TBS Group Corporate Activities Committee. The General Risk Management Committee meets, in principle, twice a year in April and November, and receives reports for the relevant period concerning the state of risk management. Specific Techniques for Risk Management The Committee works to gain an understanding of individual potential risks reported from TBS HOLDINGS, INC. and group companies, and aggregates these risks based upon their degree of impact and the frequency with which they materialize. As well as working to visualize risks, if a risk materializes, the Committee works to control the risk by analyzing the reason and putting in place improvement measures within each de- partment to prevent its recurrence. Through the steady and iterative implementation of these efforts, the Group as a whole fully addresses these risks, and aims to become an organization that is trusted by customers, stakeholders, society, and its employees. TBS Group Potential Risk Assessment Classification AC AB AA Impact

BC BB BA

CC CB CA

General Risk Management Structure Board of Directors

Low

Frequency of materialization

TBS HOLDINGS Head of Risk Management Deputy Head of Risk Management Risk Management Supervisor TBS Group Corporate Activities Committee TBS Group General Risk Management Committee TBS TELEVISION, INC. Head of Risk Management Deputy Head of Risk Management Risk Management Supervisor TBS Group General Risk Management Committee Secretariat (Legal & Compliance Division) TBS Group companies Head of Risk Management Deputy Head of Risk Management Risk Management Supervisor [Impact] The following 5 items are evaluated on a 3-point scale. (1) Impact on corporate image (2) Impact on human life and physical loss (3) Impact on company profits (4) Impact on business operations (5) Impact on business continuity [Frequency of materialization] The frequency of occurrence is evaluated in 3 levels: A: A few times a year B: About once a year C: About once every few years 75

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