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.
Business Risk | Degree of Impact | Possibility of Occurrence |
Large-scale disasters | High | High |
Product defects | High | Middle |
Supply chain disruptions and procurement issues | Middle | High |
Workplace safety and health | High | Middle |
Outbreak of infectious diseases | High | Middle |
Legal actions | Middle | High |
Leakage of confidential and personal information | Middle | Middle |
Occurrence of information system failures | Middle | Middle |
Geopolitical risks in global business | High | Middle |
Intensified competition for talent acquisition | Middle | Middle |
Environmental regulations | Low | High |
Compliance violations in the supply chain | Low | High |
Reputation damage | Low | High |
Intellectual property infringement | Low | High |
Climate change (carbon pricing, etc.) | Middle | Middle |
Market environment fluctuations | Impact and frequency can vary significantly based on the assumed event. | |
Sudden drop in product prices due to intensified competition | Impact and frequency can vary significantly based on the assumed event due to the diverse nature of product development, production, sales, and services. | |
Rapid technological innovation | Impact and frequency can vary significantly based on the assumed event. |
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