Brand Damage Risk
First written in FY2018. 1 of 2 entries say "Materialised", first in FY2019-Q3. Latest entry: FY2019-Q3.
Mtg moved to the "Worse" side of this theme in 2019.
The whole theme swung hardest in 2019: 1 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2019-Q3MaterialisedAnnual report
「Based on the findings of the investigation report received from the third-party committee on 12 July 2019, it was discovered that MTG Shanghai, a consolidated subsidiary of the Company, had made false explanations to the accounting auditor and engaged in inappropriate sales transactions, and that the Company's Global Brand Business Division had engaged in inappropriate sales transactions and accounting practices in transactions related to its cross-border e-commerce business for China.」
An investigation by a third-party committee uncovered inappropriate conduct and accounting practices at an overseas subsidiary and in cross-border e-commerce transactions for China, and the impact on brand image became apparent. - FY2018First statedAnnual report
「However, owing to the nature of these activities, they involve uncertainty arising from various factors, and if the originally intended results are not achieved, they may adversely affect the Group's financial position and operating results.」
The risk is described that brand image and business performance may be affected if new brand and product development or marketing does not align with consumer needs.