Hard-to-foresee risks in major orders
First written in FY2017. 2 of 4 entries say "Advanced", first in FY2020. Latest entry: FY2023.
0 other companies' latest entry also says "Advanced".
- FY2023AdvancedAnnual report
「In addition, for Hitachi Zosen Inova AG, a monitoring organization was established within the company to obtain timely information on project progress and profitability. Personnel have been dispatched from the Company to strengthen the risk management framework for individual construction projects.」
Management of major orders was described as including, in addition to general pre- and post-award management, a monitoring organization within HZI and the dispatch of personnel from the Company. - FY2020AdvancedAnnual report
「During the construction period, each business division holds monthly follow-up meetings and continuously monitors construction progress and earnings outlooks to identify issues and consider countermeasures, seeking to prevent risks from arising and minimize their impact. For particularly important projects, progress and other matters are reported at top management review meetings chaired by the Representative Director and President, and senior management provides instructions and advice as necessary.」
Management of risks in major orders was systematized to cover pre-award identification and assessment, monthly follow-up, top management reviews, and performance reporting after completion. - FY2019MitigatedAnnual report
「We established a Project Management Group within the Corporate Planning Department to identify and assess risks relating to the technical and commercial terms of projects and consider mitigation measures. Where necessary, we convene risk review meetings, examine risks from various perspectives, and make award decisions at the Order Decision-Making Meeting. We have also strengthened our post-award monitoring system to minimize gaps between targets and actual results in terms of profitability.」
For hard-to-foresee risks in major orders, the framework for advance identification, assessment, and consideration of mitigation measures, as well as strengthened post-award monitoring, was described. - FY2017First statedAnnual report
「Regarding risks in major orders, we established a Risk Management Group within the Corporate Planning Department to manage risks relating to the technical and commercial terms of orders, and are working to eliminate order-related risks thoroughly through risk review meetings. However, if risks that could not have been foreseen when an order was received materialize, they may adversely affect the Group's business performance and financial position.」
The possibility that risks in major orders that could not be foreseen when the orders were received may materialize was explicitly identified as a risk.