Recall and Damages Risk Arising from Product and Service Quality Issues
First written in FY2017. 1 of 3 entries say "Materialised", first in FY2021-Q3. Latest entry: FY2025.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- FY2025MitigatedAnnual report
「We have secured a framework for conducting adequate quality inspections before launching products or commencing services. If any serious defect or other material deficiency is discovered after a product launch or service commencement, we will promptly take the necessary measures, including suspending product shipments, recalling products already distributed in the market, or suspending the service.」
In response to the quality risk evidenced by the past disposal of products that failed to meet quality standards, it specified procedures for pre-launch inspections and, after a defect is discovered, suspending shipments, conducting recalls, and suspending services. - FY2021-Q3MaterialisedAnnual report
「We recorded a loss on the disposal of products that did not meet our group's quality standards and recognised settlement proceeds received in response.」
The disposal of products that failed to meet quality standards actually occurred, and we recorded an inventory disposal loss of ¥17.925 million and corresponding settlement proceeds received of ¥20 million. - FY2017First statedAnnual report
「Our group makes every effort to ensure quality, including by establishing a quality control department, but the possibility of unforeseen defects cannot be ruled out. If a defect occurs, this may affect our group's performance through recall costs, damages and litigation expenses, loss of confidence, and decreased sales.」
While a quality control department has been established, it identifies recall costs, damages, litigation expenses, and impacts on confidence and sales arising from unforeseen defects as risks.