Political, Legal and Regulatory, and Social Disruption Risks in Overseas Business
First written in FY2018. 1 of 3 entries say "Worsened", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2024: 11 of 19 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「To strengthen the risk management framework for our Asian operations, an Asia regional headquarters representative office was opened in Ho Chi Minh City, Vietnam, where we are working with local specialist consultants.」
As a response to political, regulatory and social upheaval risks in overseas operations, a framework has been established using the Asia regional headquarters representative office in Ho Chi Minh City and local specialists. - FY2021WorsenedAnnual report
「To enable swift management decisions and course corrections, our Group has established local subsidiaries and given them the initiative. At the same time, we will strengthen the three lines of defense and enforce global governance through timely information sharing with Group headquarters via remote meetings and other means, as well as checks on management conditions using self-inspection checklists.」
In addition to political, regulatory and social upheaval risks in overseas operations, the risk of governance failure due to differences in the culture, religion and other characteristics of local employees is explicitly identified, and measures for global governance have been made more concrete. - FY2018First statedAnnual report
「In these business activities, fluctuations in currency values, unexpected economic fluctuations, changes in laws and regulations and tax systems, and political and social instability caused by terrorism, war, civil unrest and other factors may adversely affect the performance and financial condition of the Group.」
For overseas operations, risks listed in addition to foreign-exchange risk include economic conditions, laws and regulations, tax systems, and political and social risks such as terrorism, war and civil unrest.