Internal Auditing Systems

The purpose of internal auditing at the Resona Group is to serve the essential function of facilitating improvements in corporate value by verifying and evaluating progress as
well as promoting improvements in all management activities to ensure sound and appropriate operations and to gain social trust in the business management systems established by Resona Holdings and other Group companies.

To ensure that internal audits meet our purpose and serve their functions properly, we put internal auditing systems in place and make sure that they are effective, establishing
independent internal auditing departments at Resona Holdings and its Group companies and clearly establishing their internal auditing responsibilities, including the authority to conduct audits, the authority to access information, and their obligation of confidentiality.

We believe that the role that the internal auditing units play in working to attain the Resona Group’s management objectives of “responding to the trust of customers” and “conducting transparent management” is extremely important. Accordingly, we have created the organization structure below for internal auditing.

In Resona Holdings, we have formed the Internal Audit Division, which reports to the Representative Executive Officers and the executive officer in charge of internal auditing. Moreover, we have formed an Internal Audit Council, separate from the Executive Committee and made up of Representative Executive Officers, the executive officer in charge of internal auditing, and the general manager of the Internal Audit Division, to discuss matters related to internal auditing.

The Group companies have established independent internal audit divisions under the direction of their respective boards of directors. According to the type of business and size of operations, these companies have formed “auditing councils,” which report directly to the board of directors of their companies to make decisions on important and fundamental matters related to internal auditing.

To guide the preparation of specific plans for internal auditing, the Internal Audit Division of Resona Holdings prepares the Annual Internal Audit Plan approved by the Board of Directors of Resona Holdings, containing the Group’s annual policies, a statement of issues subject to auditing, and other major items.

The internal auditing departments of each of the Group companies also prepare the Annual Internal Audit Plan in discussion with the Internal Audit Division of Resona Holdings. These plans are to be approved by the boards of directors of the respective companies.

The internal auditing divisions at Resona Holdings and its Group companies conduct audits based on the Annual Internal Audit Plan. Resona Holdings reports the results of internal audits to its Board of Directors and the Audit Committee. Group companies report results of internal audits to their respective boards of directors and auditors as well as Resona Holdings.