Service Defects and Outsourced Service Provider Risk
First written in FY2016. 2 of 4 entries say "Restated". Latest entry: FY2022.
The whole theme swung hardest in 2023: 2 of 15 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「The Group undertakes software development and other services on a project-by-project basis for client companies' development projects, with project managers overseeing quality, delivery schedules, costs and other risks.」
The disclosure specifies quality, delivery schedule, cost and risk management in contracted development while continuing to disclose the residual risk of projects becoming unprofitable. - FY2019ReframedAnnual report
「The Group undertakes software development and other services on a project-by-project basis for client companies' development projects, with project managers overseeing quality, delivery schedules, costs and other risks.」
The focus has shifted from the previous disclosure on service defects and the termination of subcontractor contracts to quality, delivery schedule and cost management in contracted software development, as well as the risk of projects becoming unprofitable. - FY2017RestatedAnnual report
「The Group seeks to establish transaction terms that limit the liability borne by each group company and selects appropriate subcontractors to provide high-quality services to client companies. However, it is difficult to transact with all client companies under these terms, and the possibility that client companies could pursue claims for damages and other liabilities attributable to the Group cannot be ruled out. In addition, if contracts with these subcontractors end for any reason, or an unforeseen event such as the bankruptcy of a subcontractor occurs, the Group's business or performance could be affected.」
While the Group limits its liability through contractual terms and selects subcontractors, it continues to disclose residual risks involving claims from clients and the termination or bankruptcy of subcontractors. - FY2016First statedAnnual report
「The possibility that client companies could pursue claims for damages and other liabilities attributable to the Group cannot be ruled out. In addition, if contracts with these subcontractors end for any reason, or an unforeseen event such as the bankruptcy of a subcontractor occurs, the Group's business or performance could be affected.」
Claims for liability from clients and the termination or bankruptcy of subcontractors are disclosed as interconnected risks.