Group-wide internal control and risk management framework
First written in FY2016. 5 of 9 entries say "Reframed", first in FY2018. Latest entry: FY2026.
J.Front Retailing moved to the "Worse" side of this theme in 2018, 7 years before the typical company in this theme (2025).
4 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「In the review of priority risks conducted in fiscal 2025, we added "Increasing importance of compliance" in light of the impact that compliance violations could have on management. We also renamed the previously identified priority risks "Growing importance of environmental issues" and "Growing importance of respect for human rights" as "Increasing complexity of sustainability issues," reflecting the current need for an integrated approach amid the complex interplay of nature, climate and human rights issues.」
The Group maintained 13 priority risks, adding compliance risk and consolidating environmental- and human rights-related risks under "Increasing complexity of sustainability issues." - FY2025AdvancedAnnual report
「For the period covered by this medium-term management plan (fiscal years 2024–2026), we initially identified 12 Group priority risks. After 6 months of the plan, however, we conducted a risk assessment based on monitoring and changes in the operating environment. In light of the level of impact, we added the risk previously classified as a Group annual risk, "Growing importance of respect for human rights," to the Group priority risks, bringing the total to 13 risks to be addressed.」
In risk management, the company upgraded the risk concerning respect for human rights from an annual risk to a Group priority risk, expanding the number of priority risks from 12 to 13. - FY2022AdvancedAnnual report
「To conduct effective risk management, we have established the following three lines.」
The company developed risk management into a three-lines framework comprising operating subsidiaries, the divisions of the holding company, and the internal audit function, combined with ERM, reporting to the Board of Directors, and semiannual monitoring. - FY2021ReframedAnnual report
「We regard risk as the starting point for strategy and seek to link risk management to enhanced corporate value by aligning risks with strategy.」
The company organized risk management as ERM centered on the Risk Management Committee, linking it to the starting point and strategy of the medium-term management plan. - FY2020ReframedAnnual report
「As of the filing date of the Annual Securities Report, the Group describes its risk awareness and response measures for the following 13 items as major risks that could affect investors' decisions.」
The company reorganized risk management from a list of risks in 4 categories into a framework for disclosing 13 major risks and response measures that could affect investors' decisions. It positioned the COVID-19 pandemic as a "black swan" and a crisis affecting the continuity of the business. - FY2019ReframedAnnual report
「During the current fiscal year, we identified 137 risks (uncertainties) surrounding the Group across 4 categories: strategic, finance, operational, and hazard. We analyzed and assessed each identified risk and are addressing as a priority those risks considered likely to have a very significant impact on the Group's operating performance and financial position by reflecting them in our strategy.」
The number of identified risks declined from 138 in the previous fiscal year to 137, and the framework was reorganized from evaluating risks across 4 categories to prioritizing major risks for action. - FY2018ReframedAnnual report
「The Risk Management Committee identified 138 risks (uncertainties) facing the Group across 4 categories: strategic risk, finance risk, operational risk, and hazard risk. Of these 138 risks (uncertainties), we have described 22 risks (uncertainties) that could have a material impact on investors' decisions.」
The company reorganized its previous risk management framework to assess risks from both opportunity and threat perspectives, identify and evaluate 138 items, disclose 22 items, and prioritize 15 of them for action as corporate risks. - FY2017AdvancedAnnual report
「The Risk Management Committee manages and addresses risks generally, particularly strategic risks, systematically from a company-wide perspective, and makes management decisions from a perspective dedicated to risk management.」
The company has developed the previous compliance and risk management framework into one that includes the Risk Management Committee, Compliance Committee, internal audit office, hotline and other functions. - FY2016First statedAnnual report
「We have established a Compliance and Risk Management Committee to appropriately address issues related to compliance management across the Group and manage and assess risks in business operations.」
The company has established a Group-wide management framework through the committee, the internal audit office, the internal reporting system, and internal control regulations for financial reporting.