Product Defect and Product Liability Risks
First written in FY2017. 2 of 4 entries say "Restated". Latest entry: FY2023.
- FY2023RestatedAnnual report
「We cannot eliminate the possibility of unexpected product defects or accidents resulting from them. Although we maintain product liability insurance (PL insurance) in preparation for the possibility of substantial damages costs, if damages exceed the coverage limit or the brand image deteriorates because a problem has occurred, sales could decline and profitability could deteriorate, affecting our group's operating results and financial position.」
While describing responses involving quality control and PL insurance, it continues to identify the risks of product defects, accidents, damages claims and deterioration of the brand image. - FY2022WorsenedAnnual report
「However, quality problems and claims cannot be completely eliminated. In addition, as we enter new materials, new markets and new businesses in accordance with the medium-term management plan NF2023, if the development of quality-control systems for new products and services falls behind, quality problems and claims could occur, which could reduce confidence in our group and affect our operating results and financial position.」
It additionally identifies the risk that quality-control systems for new products and services may fail to keep pace with entry into new materials, new markets and new businesses. - FY2021RestatedAnnual report
「Our group manufactures products in accordance with strict quality-control standards, but cannot eliminate the possibility of defects in all products or accidents resulting from such defects.」
It continues to explain that product defect, accident and damages risks cannot be completely eliminated even with quality-control measures and PL insurance. - FY2017First statedAnnual report
「Our group manufactures products in accordance with strict quality-control standards, but cannot eliminate the possibility of defects in individual products or accidents resulting from such defects. We intend to minimize the impact of accidents by maintaining product liability insurance (PL insurance), but there is no guarantee that the insurance will cover the full amount of any final damages borne by our group.」
While describing measures involving quality control and PL insurance, it indicates the possibility that product defects, accidents and damages claims could affect operating results, financial position and the brand.