Risk of not being able to secure, retain and develop enough human resources and build constructive relationships with labor unions due to poor business performance and a competitive employment environment.● Slowdown or suspension of business activities● Slowdown or suspension of supply chain operations● Inability to achieve growth plansRisk of death and injury of employees and damage to business facilities for production, logistics and sales operations caused by severe natural disasters, such as earthquakes and floods ● Slowdown or suspension of business activities● Slowdown or suspension of supply chain operations● Reduced sales opportunities● Additional costs required for recoveryRisk of changes in the retail market environment led by a surge in online ordering and a change in spending behavior driven by the external macro environment.● Acquisition or loss of consumer base● Winning or losing trust from consumers● Reduced sales profit● Reduced portfolio availabilityRisk of failing to implement measures to improve our competitive advantage and grow the business (through business integration, capital investments, product development, etc.).● Deterioration of financial conditions caused by loss due to impairment ● Losing trust from shareholdersRisk of deterioration in financial conditions cause by an increase in funding costs and retirement benefit obligations.● Increased cost base● Loss of stakeholder trust● Implement strategic people development plans and develop a new salary payment structure● Recruit diverse talent and commitment to people development (including overseas)● Implement unmanned plant operations, online transactions, and outsourcing of shipping operations● Enhance the workplace environment to improve employee satisfaction● Strengthen communication between top management and employees● Strong Business Continuity Plan (BCP) and crisis response capabilities enabling structured and streamlined responses● Regular crisis and disaster response training and simulations● Identified alternative shipping locations and secure transportation capacity in preparation for a disaster that damages the logistics centers ● Secure earthquake coverage● Redesign of Disaster Control Headquarter (DCHQ) model to enable enhanced regional response and speed of response● Enhancing the product portfolio and accelerated productivity further to deliver products that meet the needs of the retailers ● Enhancing Right Execution Daily (RED) to drive operational excellence● Expanding the online channels to respond to the surge in Internet mail orders● Building a robust system that enables the group to respond readily and flexibly to various circumstances● Formulate business integration strategies that take multiple scenarios into consideration● Supervision by Board of Directors and Executive Officers● Promote growth of cash flow through sales activities to maintain and improve creditworthiness● Establish Pension Governance Committee to strengthen the monitoring function of retirement benefit obligationsPeople(attraction andretention)Natural disastersEvolving commercialand competitivelandscapeGrowth strategiesFinancial risksRisk categoryDescription and potential impactsKey mitigations62High risks
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