Risk of Failure to Deliver Results from Investments, Business Alliances and New Business Models
First written in FY2024. 1 of 2 entries say "Mitigated", first in FY2025. Latest entry: FY2025.
The whole theme swung hardest in 2022: 4 of 18 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「In particular, before making investments in partner companies or entering into business alliances, the company reviews the partner’s financial condition and contract terms and makes decisions after considering the risks. After investments or alliances, it regularly monitors progress toward the achievement of the initially assumed business plans and other targets.」
For the risk of underperformance in investments, business alliances and new business models, the company identified pre-investment review and regular post-alliance monitoring of progress toward business plan targets as countermeasures. - FY2024First statedAnnual report
「However, rapid changes in the social environment, including technological innovation, the creation of new businesses by competitors and entry by other operators into the contact center business, could cause the Group’s contact center business to lose its competitive advantage and delay the creation of new businesses, potentially affecting the Group’s business growth. In addition, if it is determined that the expected results from investments in partner companies or business alliances cannot be achieved, impairment losses or other effects may arise, and the termination of an alliance may lead to the discontinuation of the business, potentially affecting the Group’s financial position.」
Under the “strategy” category of top risks, the company independently disclosed the risks of impairment, termination of alliances and business discontinuation if investments, business alliances and new business models fail to produce the expected results.