Risk of System Failures and Service Interruptions
First written in FY2019. 3 of 7 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2026: 17 of 84 companies on the "Worse" side.
24 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Our group is working to reduce the risks of system failures and cyberattacks through measures including redundancy for network equipment, servers and storage equipment, operational monitoring, backups, malware prevention using EDR and antivirus software, IDS/IPS, and penetration testing.」
Measures addressing system failure and cyberattack risks were specified in greater detail, expanding from the previous backups and distributed data centers to redundancy, EDR, IDS/IPS and penetration testing. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
No major risk events or material changes were identified regarding the risk of system failures and service suspensions. - FY2023MitigatedAnnual report
「To prevent recurrence and drive improvements, we are conducting a comprehensive review of our security systems and, with the assistance of external specialist organizations, implementing measures for ① preventing intrusions, ② early detection of intrusions, and ③ minimizing damage if an intrusion occurs.」
Following the unauthorized access and operational constraints experienced by the U.S. subsidiary, the Company conducted a comprehensive system review and implemented a 3-stage program to prevent recurrence. It recorded ¥223.997 million in related costs and ¥54.648 million in insurance proceeds. - FY2023-Q3MaterialisedAnnual report
「The Company recorded ¥260.855 million as an extraordinary loss for restructuring costs aimed at optimizing the cost structure in connection with the strategic downsizing of its non-AI business, and ¥225.537 million as an extraordinary loss for information security measures in response to unauthorized access.」
In response to the unauthorized access to the U.S. subsidiary, the Company recorded ¥225.537 million in information security costs related to investigating the cause and impact, restoring the systems and other measures. The impact of the system failure and service suspension risk continued to appear as an expense. - FY2023-Q2MaterialisedAnnual report
「The Company recorded ¥221.749 million as an extraordinary loss for information security measures.」
In connection with the unauthorized access to the U.S. subsidiary that occurred in FY2023-Q1, the Company recorded ¥221.749 million in costs for investigating the cause and impact, restoring the systems and other measures. The impact of the system failure and service suspension risk materialized as an expense. - FY2023-Q1MaterialisedAnnual report
「Because our U.S. subsidiary was subject to unauthorized access by a third party in May 2022, it had to disconnect its systems and investigate the cause and impact. On 17 June 2022, we announced that no external information leaks or damage affecting customers or other stakeholders had been identified and that the systems had been restored and operations resumed. During that period, however, our U.S. subsidiary was unable to conduct some operations, and its efforts to secure orders for large projects were also significantly constrained.」
The previously recognized risk of system failures and service suspensions caused by unauthorized access and other incidents materialized, resulting in the suspension of some operations at the U.S. subsidiary and constraints on efforts to secure orders for large projects. The Company explained that the systems had been restored and that no external information leaks or damage to customers or other stakeholders had been identified. - FY2019First statedAnnual report
「Our group has made thorough preparations for incidents through measures including data backups and distributing data across multiple data centers. However, if a system failure occurs, the resulting temporary suspension of services could affect performance.」
While taking measures including backups and distributing data across multiple data centers, the Company disclosed the risk of system failures caused by natural disasters, accidents, unauthorized access and other events.