Risk Management

The Company has established internal rules for loss risk management and has established a Risk Management Committee to oversee overall risk management. Furthermore, each business division manages risks related to their respective divisions and has established a system to report the status of risk management to the Board of Directors.
Among matters related to the status of business and accounting, the following are the major risks that management recognizes as having the potential to materially affect the financial position, operating results, and cash flows of the consolidated companies.

(1) Structure as a business related to the equipment industry
(2) Supply chain
(3) Product price competition, competition, and new development
(4) Disaster countermeasures
(5) Infectious disease and pandemic-related
(6) Retirement benefit costs and obligations
(7) Public regulations
(8) Compliance
(9) Human resource recruitment and development
(10) Foreign exchange rate fluctuations
(11) Impairment accounting
(12) Information security and cyber attacks
(13) Product quality-related
(14) Financial covenants
(15) Deferred tax assets

For details on each risk, please refer to the Annual Securities Report (Business Risks) for the fiscal year ended March 31, 2023