Delays in Establishing Management Systems for Consolidated Subsidiaries
First written in FY2024. 1 of 2 entries say "Worsened", first in FY2025. Latest entry: FY2025.
L is B Corp. moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 4 of 16 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Our group has multiple subsidiaries and is working through the company’s administrative divisions to strengthen management systems, including internal controls. However, management systems may not keep pace with the expansion of the group resulting from recent M&A and new company formations.」
The scope of subsidiary management has expanded from recently consolidated subsidiaries to multiple subsidiaries and the entire group through M&A and new formations, and delays in establishing management systems continue to be identified as a risk. - FY2024First statedAnnual report
「Our group has subsidiaries and is working through the company’s administrative divisions to strengthen management systems, including internal controls. However, because the period since they became consolidated subsidiaries is short, management systems may not be established in time.」
In the first year after making System M’s a consolidated subsidiary, the group newly recognized the possibility that subsidiary management systems may not keep pace, potentially resulting in legal violations or deficiencies in licensing procedures.