We take a company-wide view of risks to identify material risks and implement appropriate control measures. The head of each business unit and overseas regional business unit is responsible for managing risks in their business domain within the authority delegated to them as part of the execution of their duties.
Meanwhile, each corporate staff unit provides support to business units and overseas regional business units, while also monitoring the company-wide position and reporting to management regarding the aspects of risk management that they are responsible for. In addition, the advisory bodies and sub-committees of the Executive Committee design and develop risk management structures on a company-wide basis, and address material risks. Mitsui has established an integrated risk management system that manages company-wide risks centrally through the Executive Committee and its advisory body, the Portfolio Management Committee. The corporate staff units, which act as the secretariat, manage risks from a company-wide perspective. In coordination with relevant divisions, they identify material risks and take appropriate measures, considering the frequency of occurrence, expected scale of damage, and level of risk tolerance. In FY March 2026, these efforts were discussed by the Portfolio Management Committee and then presented to the Executive Committee and the Board of Directors. Furthermore, under this structure, affiliated companies conduct Control Self-Assessment as a means for autonomously evaluating risks and the effectiveness of controls, and are working to sustain and enhance appropriate risk management.

Risk management structure overview

Quantitative analysis Using risk Assets

Shareholder equity and risk assets

 

As part of our integrated risk management, we conduct a quantitative risk analysis every year. The results are discussed by the Portfolio Management Committee under the theme of "Mitsui's risk exposure and control," and then reported to the Executive Committee and the Board of Directors.
In quantitative risk analysis, in addition to the risks inherent in on-balance-sheet assets, Mitsui also evaluates off-balance-sheet risks such as market risks and guarantee liabilities under consistent criteria. These are managed collectively as risk assets using a unified measure. Risk assets serve as the basis for integrated risk management, allowing us to analyze our current position from various perspectives, such as business investment risk, credit risk, and market risk, as well as by segment, country, and region.
From the perspective of financial soundness, we continuously monitor the level of risk assets relative to shareholder equity. In the fiscal year ended March 2026, the ratio of risk assets to shareholder equity rose, reflecting investments such as the Rhodes Ridge iron ore project in Australia. Through continuous monitoring, however, we have maintained a sound financial base while expanding our business portfolio. In addition, we verify the soundness of our entire balance sheet through multifaceted assessments that include stress tests involving hypothetical scenarios such as a downgrade in the internal ratings of our assets and sudden fluctuations in foreign exchange and stock markets.
Complementing this emphasis on financial soundness, we also assess profitability relative to risk by examining the ratio of profit to risk assets.
COCF has been at around the 1 trillion yen level for five consecutive fiscal years. Integrated risk management is one of the mechanisms supporting this stable cash generation. We will continue to conduct appropriate risk management to strengthen resilience against downside risks to our financial performance and enhance corporate value over the medium to long term.

Material risks (As of March 31, 2026)

*1 Report to the Executive Committee as deemed necessary
*2 Organization headed by the CHRO, established based on the "Rules on Business Continuity Management in case of Disasters"

Trade and logistics platform—Turning risk into competitiveness

Functions related to trade and logistics are consolidated within the Logistics Strategy Division and a subsidiary that it is in charge of, Mitsui & Co. Trade Services, and conducts management and operations on a company-wide, cross-organizational basis. By centrally handling trade and customs management as well as logistics operations, and by consolidating trade compliance functions within the Corporate Staff Units, Mitsui has established internal controls for trade and logistics based on an integrated management framework, enabling early identification of risks and prompt decision-making. For example, regarding trends in US trade and tariff policies, Mitsui utilizes its trading and logistics-related data as well as customs clearance data to continuously visualize and analyze the impact on a company-wide basis. As trade and logistics functions are consolidated across the entire Company, the impact of regulatory changes on business can be analyzed and assessed swiftly, enabling us to not only deal with risks but also to capture new business opportunities.
In international transportation, in addition to responding to contingencies, such as changes in transportation routes and securing alternative methods of transportation, Mitsui implements risk hedging through futures transactions based on data such as freight and fuel prices, cargo and vessel supply-demand conditions, and port utilization rates. Furthermore, by leveraging the scale merit of consolidating transportation demand across the Group, Mitsui achieves transportation capacity and conditions that are difficult for individual businesses to secure, thereby balancing stable supply and cost competitiveness.
In addition, Mitsui is enhancing the sophistication of its operations through AI by utilizing the expertise and data from trade and logistics operations accumulated across the entire Company. For example, through the use of AI to determine tariff classification (patent pending) and the automation of freight quotation processes, Mitsui is improving operational efficiency and promoting the organizational sharing and utilization of expertise from specialized personnel. Moreover, efficiency improvements that have enabled the freeing up of human resources in certain roles are being reallocated to high value-added areas requiring greater expertise and judgment, such as advanced risk analysis and supply chain strategy planning, thereby strengthening competitiveness.
In this way, Mitsui's trade and logistics platform seamlessly integrates risk management, logistics optimization, and data utilization to support proactive decision-making ahead of changes and the creation of new business opportunities, leading to enhanced competitiveness of the trading businesses and sustained value creation.