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Business Risk
Among the business and financial conditions described in our securities report, the following are the key risks that management recognizes may significantly impact the financial position, operating results, and cash flow of our consolidated companies. These risks have been identified and assessed through our risk management process, and their potential impact and frequency are outlined below.
For detailed information on the risks related to our Group's business, please refer to the PDF.
Impact and occurrence frequency risks
Business Risk | Degree of Impact | Frequency |
| Large-scale disasters | High | High |
| Defect in product | High | Medium |
| Difficulty in procuring raw materials, etc. | Medium | High |
| Occupational safety and health | High | Medium |
| Spread of infectious diseases | High | Medium |
| Facing a litigation | Medium | High |
| Leakage of confidential and personal information | Medium | Medium |
| Occurrence of information system failures | Medium | Medium |
| Geopolitical risks in global business | High | Medium |
| Intensified competition for talent acquisition | Medium | Medium |
| Environmental regulations | Low | High |
| Compliance violations including those in supply chains | Low | High |
| Reputational damage | Low | High |
| Infringement of intellectual property rights | Low | High |
| Climate change (carbon pricing, etc.) | Medium | Medium |
| Changes in market environment | The degree of impact and frequency vary greatly depending on which event is assumed. | |
| Rapid decline in product prices due to intensified competition with competitors | Due to the wide range of products developed, manufactured, sold and serviced by the Group, the degree of impact and frequency vary greatly depending on which event is assumed. | |
| Rapid technological innovation | The degree of impact and frequency vary greatly depending on which event is assumed. | |
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