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) Structural risks associated with equipment industry-related business
(2) Supply chain
(3) Price competition, competition and new development of products
(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