Risk of Failing to Execute Contracts for Spot Transactions
First written in FY2017. 1 of 3 entries say "Dropped", first in FY2018. Latest entry: FY2023.
Vector moved to the "Worse" side of this theme in 2023.
0 other companies' latest entry also says "Reframed".
- FY2023ReframedAnnual report
「In the Group's PR business, industry-specific business practices require flexible and agile changes to PR plans and content. Accordingly, the content of projects, implementation timing, compensation and payment timing may change during the provision of services. If differences in understanding or disputes arise with business partners regarding transaction terms, the Group's financial condition and operating results could be affected.」
The previously identified risk of contracts not being executed for spot transactions was reframed as the risk of flexible business practices in the PR industry and differences in understanding or disputes regarding transaction terms. The report also describes a response measure of executing memoranda or similar documents when contracts or purchase orders are amended. - FY2018DroppedAnnual reportIn the current report's “Business and Other Risks” section, the previously disclosed risk of contracts not being executed for spot transactions could not be found.
- FY2017First statedAnnual report
「In spot transactions, including cases where spot assignments are accepted from advertising agencies with which the Group has had long-standing business relationships, industry practices may result in an extremely short period between an inquiry and the start of activities. In some cases, services are performed without a contract document being executed.」
This indicates that questions regarding transaction terms or disputes could arise when work begins without a contract document being executed.