Risk management system

We have established a Risk Management Committee, whose members are the presidents of the Company and its subsidiaries, to supervise and manage risk management for the entire group. In addition, we have established a Risk Management Subcommittee and a Compliance Subcommittee under its umbrella to ensure efficiency and efficiency from a company-wide perspective. We are working on efficient and effective risk management.

Risk management

In order to ensure the appropriateness and soundness of our operations, we have established a system that includes internal regulations regarding risk management, and conduct appropriate risk management that corresponds to the type and scope of risk.
In addition, we have established a risk management subcommittee, in which the directors of the Company and its subsidiaries and those in charge of each department organize the content of their duties, understand, analyze, and evaluate inherent risks, and implement appropriate countermeasures. We conduct periodic reviews.

Business risks

As of March 31, 2023, management recognizes risks related to the Group's business that may have a significant impact on the consolidated company's financial position, operating results, and cash flow status. The main risks are: For details, please see [Business Risks] in the IR Library - Securities Report.

(1) Decrease in domestic population, number of households, and securing human resources

(2) Regarding raw materials, material prices, personnel costs, logistics costs, outsourcing costs, etc.

(3) Regarding decline in value of owned assets

(4) Regarding Overseas business

(5) Regarding housing demand and supply trends

(6) Regarding natural disasters, accidents, etc.

(7) Information security

(8) Legal regulations

(9) About climate change

(10) Regarding procurement of business funds

(11) Regarding housing quality assurance

(12) About M&A

Group comprehensive risk management

The Risk Management Committee, which is positioned under the Board of Directors, is chaired by the President and Representative Director, and consists of the Presidents and Representative Directors of major group companies as committee members, and centrally oversees risk management for the entire Group, Managed. This committee meets regularly once every six months, as well as from time to time as necessary, to promote continuous improvements to the company-wide risk management system.

Important risks for the entire Group are thoroughly discussed and countermeasures are considered by the Risk Management Committee, and we have also established a system in which particularly important risks are discussed by the Board of Directors.

As climate change-related risks are risk factors that have the potential to have a significant impact on the Group's business activities, the Sustainability Promotion Committee's deliberations are shared with the Risk Management Committee, and the committee collaborates with each other. We have put in place a system to promote this.

Risk management system