Risk of Regulatory, Social, and Political Disruption in Overseas Business
First written in FY2017. 1 of 5 entries say "Mitigated", first in FY2020. Latest entry: FY2025.
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
- FY2025WorsenedAnnual report
「Regarding the impact of tariffs in the United States, the company assumes a decline in demand accompanying a macroeconomic slowdown and higher tariff costs. The consolidated forecasts for the fiscal year ending March 2026 shown below were prepared on the assumption that the impact of the tariff policy will continue throughout the year.」
Regarding legal and regulatory and trade restriction risks in overseas operations, US tariff policy was added as a specific risk that could reduce demand and increase tariff costs. - FY2023RestatedAnnual report
「In response to recent changes in the international situation, the company monitors developments using internal and external resources, shares information within the group and ensures that it is disseminated, and responds to changes. However, overseas business activities carry risks including unforeseeable changes in laws, regulations and policies, weaknesses in industrial infrastructure, trade restrictions and retaliatory measures between countries, terrorism, war and other factors causing social or political disruption.」
The company continues to address the risks associated with overseas business, including laws and regulations, trade restrictions and sociopolitical unrest, through monitoring international developments and sharing information. - FY2021ReframedAnnual report
「Overseas business activities entail risks including unexpected changes in laws, regulations and policies, vulnerable industrial infrastructure, trade restrictions and retaliatory measures between countries, and social or political unrest caused by terrorism, war and other factors,」
Explicit restrictions on and retaliatory measures against trade between countries have been added to overseas business risks, broadening the scope of legal, regulatory, sociopolitical, and other disruptions. - FY2020MitigatedAnnual report
「In addition, to strengthen the management foundation supporting overseas business activities, major subsidiaries in each region have been given functions overseeing governance within their respective regions, and the company is working to identify and appropriately address risks that may arise in each region.」
In response to the risks of legal, regulatory, and sociopolitical disruptions associated with overseas business, the Company has assigned regional governance functions to its major subsidiaries in each region. - FY2017First statedAnnual report
「However, overseas business activities entail risks including unexpected changes in laws and regulations, weak industrial infrastructure, and social or political disruption caused by terrorism, war, and other factors, which could affect the Group’s operating results and financial position.」
First systematic description of the risks associated with overseas expansion, including regulatory changes, industrial infrastructure, terrorism, war, and social and political disruption.