Internal audit aims to support the achievement of organizational objectives through the evaluation of various activities within the organization and the provision of assurance and advice based on that evaluation, all while maintaining independence and objectivity.

As the Internal Audit Division of Nomura Group, we carry out internal audit operations in accordance with our purpose: "We help Nomura create a better world by providing valuable, independent, risk-based, and objective assurance, advice, insight, and foresight."

The Company has established the Internal Audit Division that is independent of business execution and reports directly to the Audit Committee. The formulation of the annual internal audit plan and budget requires the approval of the Audit Committee or their selected member, and the appointment or dismissal of the Internal Audit Division Head requires the consent of the Audit Committee or their selected member, thereby ensuring its independence and objectivity from business execution.

In addition to the Group Internal Audit Department within the Company, it has also set up dedicated internal audit units (and personnel) in major subsidiaries in Japan and overseas. This allows it to audit business and corporate functions across Nomura Group using globally unified methodologies. Specifically, the Internal Audit Division operates under a global matrix structure based on functions and regions. Highly-skilled and experienced personnel in internal auditing and related areas have been appointed as Global Portfolio Directors for each business and corporate function to be audited, thereby enhancing overall consistency and evaluating the internal controls of the entire group globally with coherency.

In addition, the Senior Managing Director in charge of the Internal Audit Division reports directly to the Audit Committee on the development/operation of the internal audit organization and the progress of internal audits, and also incorporates in the annual internal audit plan the points the Audit Committee deems necessary for review, ensuring the effectiveness of internal audits through coordination between the Internal Audit Division and the Audit Committee.

The Internal Audit Division of Nomura Group takes a risk-based approach in principle to effectively and efficiently utilize audit resources and allocates audit resources according to the type and degree of inherent risks. The Internal Audit Division has adopted globally unified internal audit methodologies (which adhere to the International Professional Practices Framework (IPPF) established by the Institute of Internal Auditors (IIA)) to support group-wide internal auditing activities. In addition, in order to promote the use of technology in internal audit activities throughout the Group, a dedicated data analytics team has been formed, and personnel with expertise in data analytics and management have been assigned in each region to advance the use of data analytics in each internal audit activity. Efforts are also being made to implement continuous monitoring and other initiatives using data analytics. Furthermore, the Internal Audit Division undergoes a quality assessment of internal audits on a group-wide basis by external experts approximately every five years, in accordance with internal regulations and the IPPF Standards. The results of these assessments are also utilized to enhance the quality and sophistication of internal audits.