Unrecovered risk on strategic investments
First written in FY2024. 1 of 2 entries say "Mitigated", first in FY2025. Latest entry: FY2025.
The whole theme swung hardest in 2019: 13 of 34 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「After an investment is made, the progress of the investment recovery plan and cost-effectiveness are reviewed at meetings on plan progress, and the results are reported to the Board of Directors.」
Specific post-investment controls were established for the unrecovered risk on strategic investments, including monitoring progress under investment recovery plans, reviewing cost-effectiveness, and reporting to the Board of Directors. - FY2024First statedAnnual report
「When making such large-scale investments, we establish authorization and approval criteria under our rules governing delegated authority, and make and execute appropriate decisions following deliberation by the Management Committee and resolutions of the Board of Directors. However, if the investments fail to produce the anticipated synergies or expected results, our business development, financial condition, and operating results may be affected.」
For large-scale investments, including M&A, the acquisition of land and buildings and relocation of business sites, and system investments related to DX, the potential impact if the expected synergies or results are not achieved was separately identified for the first time as a key risk.