Mizuho Financial : Oct. 13 Material

1.

Business Improvement Plan - Current Status

p.3

2.

System Failures - Prevention and Response Enhancement

p.4

Utilizing Customer & Employee Feedback/

3.

IT Governance/Reforming Corporate Culture

p.5

4.

Governance

p.6

5.

Initiatives to Maintain Effectiveness

p.7

Systems

•

Continuing inspections and measures to prevent system failures and ensuring timely response and recovery should

they occur

•

Continuously preventing major system failures

Actions taken

Improvement status1

System failures

• Finished all of the following inspections by the end of

• No. of major failures: 0

prevention

FY2022 (continuing in FY2023)

(FY2021:11, FY2022: 2)

Hardware

• Finished the replacement of parts that could cause failures:

• Incl. no. of hardware-related failures: 0

inspections

Approx. 380 (continuing)

(FY2021: 5: FY2022: 1)

Software release

• Thoroughly reviewed software releases and knock-on

• Incl. no. of release-related failures: 0

inspections

effects (continuing)

(FY2021: 2, FY2022: 0)

Application

• Finished system performance inspection for all 17

• Incl. no. of performance-related failures: 0

inspections

operations (expanding and continuing)

(FY2021: 2, FY2022: 1)

Timely

• Finished inspection of recovery methods for all 95 systems

• No. of cases taking >3 hours: 0

recovery

(continuing)

(FY2021: 7, FY2022: 0)

Enhancement

•

Minimized customer impact through timely initial response and recovery in the event of a system failure

of response

•

Improved ATM functionalities for safe & reliable customer use

Actions taken

Improvement status1

capabilities

• Rigorous initial response operations (continuing)

• Generally, within 30 minutes from the preliminary report

Target range: Within 1 hour

• Completed the visualization of systems and operations for

Timely initial

all 30 operations (expanding and continuing)

• No. of failures causing a transaction to be processed the

response and

• Implemented practical training (continuing)

next day2: 0 (FY2021: 7, FY2022: 2)

recovery

• Completed the formulation of the announcement text and

• A structure that allows for timely notification has been

the preparation of the announcement posting location

developed. Most recently, there were no events that should

(continuing)

be announced.

• Finished the installation of cameras with speakers at all

• No. of ATMs out of service3: 12 units at most (FY2021:

ATM response

offices: 1,801 offices

4,318 units)

• Completed improvements to prevent the capture of

• Capture of bankbooks/cards: 0 (FY2021: 5,244)

bankbooks/ATM cards

1. Actual results of FY2023 1H; for FY2022, actual results from Apr. 2022 to Mar. 2023; for FY2021, actual results from Feb. 2021 to Mar. 2022; the no. of failures indicates domestic

impact, excluding externally caused failures.

2. Number of domestic system failures that resulted in transactions that should have been processed on the current day but that were processed on the following day in part, including

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transactions in progress, etc.

Legal

• Self-governing practices in improving operations have been established, including the continuous

compliance

enhancement of the BCP system and inspection reviews based on changes in the external environment.

• Employees' essential understanding has improved through training, personnel exchanges, and the

acquisition of qualifications, etc.

Actions taken

Improvement status

Enhancement of

• Review of the BCP system for major operations

• Improvement of comprehension levels and

operation

and continuous training on relevant laws and

behavioral awareness confirmed

infrastructure

regulations

• Number of employees with external AML/CFT

Improvement of

• Continuous verification of inspections and the

certificates increasing, totaling over 2,000

employees; most of the employees who are

results based on risks and changes in the external

analytical skills

required, have completed the qualifications

environment

Implementing

• Maintaining and continuing initiatives, such as multi-facetedinformation-gathering, enhancement of

supervisory

expertise, and better follow-up with management, while establishing and starting the implementation of an

functions

improvement cycle centered on the Board of Director's policy for further penetration

Actions taken

Improvement status

Multi-faceted

• Continuous communication between outside

information-

directors and officers/employees

• Maintaining and continuing actions at left so that

gathering

supervisory functions will be appropriately

Enhancement of

• Enhancement of human resources allocation and

demonstrated, with a PDCA cycle centered on the

discussions of executive officers, with the

Board of Directors' policy being used

expertise

appointment of outside directors including regarding

the perspective of technology expertise

Improvement of

• Implementation and continuation of hands-on training with a sense of reality and urgency

operations by passing

- Conducting cyber incident response training and earthquake scenario training for managements and employees

on lessons leaned

participating as one team, with cross-departmental IT system failure training involving overseas offices, system

divisions' training using actual devices, etc.

from system failures

• Installation and enhancement of exhibition spaces to provide opportunities to learn and reflect on

and having a sense of

previous failures and how to prevent recurrence

ownership

- Creating web content/VR content so that more front offices and employees can have access

• Implementation and expansion of new hands-on/practicaltraining sessions designed to further

Visualization of

strengthen IT inspection skills and techniques, as well as knowledge communication

improvement know-

• Expansion of initiatives to visualize and check overall systems and entire workflows

how, with the

- Expansion of operations in scope, with rollout to overseas and group companies

penetration and

• Continuous identification and address of risks in systems and operations, considering changes in

sharing of the know-

the external environment, not just at system divisions but in a company-wide way, in order to ensure

how across the

stable business operations

organization

- In particular, visualization and re-confirmation of the peak transaction volume assumed for the end of the first half,

system capacity, etc.

Balancing

• Continuous improvement of inspection efficiency by using system- and tool-basedsolutions and AI

- Use of tools for inspections, personnel management, etc.; improvement of the accuracy of data analysis

effectiveness and

• Starting the frontline's voluntary movement to further improve the efficiency of other IT

efficiency

operations

- Workflow production, contract digitalization, etc., of system operations

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