Declining demand because GRC and security are defensive functions for companies
First written in FY2022. 1 of 2 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2020: 16 of 36 companies on the "Worse" side.
51 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「The GRC and security services provided by the group fall within the so-called “defensive” area for companies, which reduces the risk of incurring losses rather than generating revenue. Accordingly, demand may decline because these services are likely to be subject to cost-cutting when economic conditions deteriorate.」
This reiterates the risk that demand for GRC and security may decline when economic conditions deteriorate because they are defensive corporate functions. - FY2022First statedAnnual report
「The GRC and security services provided by the group fall within the so-called “defensive” area for companies, which reduces the risk of incurring losses rather than generating revenue. Accordingly, demand may decline because these services are likely to be subject to cost-cutting when economic conditions deteriorate.」
The company newly describes the possibility that demand may decline during economic downturns because the services reduce loss risk rather than generate revenue and may therefore be subject to cost-cutting.