Sustainability - Governance
Risk management
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.
Organizational Structure
Promotion system
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, 2026, the following are the major risks related to the business operations of our group that management recognizes as potentially having a significant impact on the financial position, operating results, and cash flows of the consolidated companies:
For details, please see [Business Risks] in the IR Library - Securities Report.
(1) Market and demand structure risks
① Regarding the decline in the domestic population and the number of households
② Trends in the supply and demand of housing
③ Regarding the decline in the value of held assets
(2) Risks related to supply and cost
④ Labor shortage and securing personnel
⑤ Regarding raw material and supply costs, labor costs, logistics costs, outsourcing costs, etc.
(3) Environmental and external environmental risks
⑥ Regarding Overseas business
⑦ About climate change
(4) IT, infrastructure, and business continuity risks
⑧ Information security
⑨ Regarding natural disasters, accidents, etc.
(5) Compliance risks
⑩ Legal regulations
(6) Operational and Quality Risks
⑪ About Housing Quality Assurance
(7) Strategy and investment risks
⑫ About M&A
(8) Financial risks
⑬ Regarding the procurement of business funds
Group comprehensive risk management
The Risk Management Committee, positioned as a subordinate organization of the Board of Directors, is chaired by President and Representative Director and comprised of representative directors from major group companies. It centrally oversees and manages risk management for the entire group. The committee meets regularly every six months, as well as as needed, to promote continuous improvement of 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 major impact on the Group's business activities, the Sustainability Promotion Committee's deliberations are shared with the Risk Management Committee, and the committee works together. We have put in place a system to promote this.
Risk management system
