As well as identifying various risks related to its business activities and implementing appropriate countermeasures, the YAMADA HOLDINGS Group shares necessary information to mitigate and prevent any risks from materializing.
Every month YAMADA HOLDINGS holds the Risk Management Committee, chaired by the Director in Charge of the Human Resources and General Affairs Division, to build a risk management system that includes every Group company. The content of discussions from these committee meetings is also reported back to the Board of Directors. The Risk Management Basic Rules have been established as a system for preventing risks and as a means for addressing any risks that have arisen. Each division operates in accordance with these rules.
In terms of information security, a personal information protection policy and an information security basic policy have been formulated in order to properly manage customers’ personal information. The Security Committee (held once a month), chaired by the General Manager of ITDX, makes every effort in terms of information security by identifying any information security risks both internally and externally, formulating countermeasures and reporting progress.
The YAMADA HOLDINGS Group has set out the risks that may have a significant impact on its business results and financial position, and measures to mitigate these risks.
| Items | Risk | Countermeasure | Impact Level |
|---|---|---|---|
| Risks related to earthquakes and natural disasters | Damage to store facilities or power outages caused by typhoons, earthquakes, or torrential rain may lead to business interruptions or hinder product procurement, resulting in a significant decline in net sales and a significant impact on business results. |
Construct safety management system centered on emergency management HQ
Regular review and update to the disaster response manual
Training for employees
Establish a stockpile of emergency supplies
(YAMADA HOLDINGS and all YAMADA DENKI stores and business sites)
|
High |
| Risks related to the supply of original brand products | In the event of a disaster or other reason, there may be insufficient or no supply of our original products, which may have an impact on business performance and financial position. |
Build system to mitigate disaster risks for manufacturing contractors
Develop business relationships with new contractors and employ their services in a decentralized manner
|
Medium |
| Risks related to information security | In the event of any tampering or leaking of information due to natural disasters, computer viruses, unauthorized access, etc., any such customer data breach may negatively impact the Group’s reputation and corporate image, which may affect its business performance and financial position. |
Thorough compliance with information security and privacy policies
Hold study sessions to raise awareness among employees on information security
Obtain international standard ISO/IEC 27001 certification (Takasaki Headquarters)
| High |
| Risks related to product purchasing and inventory | With disruption to the distribution network due to natural disasters, changes in relationships with suppliers, a global shortage of resources, or a collapse of the supply chain, etc., it may be difficult to purchase products and secure inventories as planned, which may have an impact on business results. |
Employ the services of suppliers in each product category in a decentralized manner
Hold regular purchasing and inventory meetings with purchasing managers in each category
|
Medium |
| Risks associated with large-scale epidemics | Due to the impact on management resources owing to major outbreaks of infectious diseases such as influenza, the stable supply of products and services may become difficult, which may have an impact on business performance and financial position. |
Rigorous infection control measures that put the health and safety of customers, shareholders, business partners, employees, etc. first
Ascertain employee safety during emergencies and put in place steps to return to work
Implement measures in line with the guidelines of the Japan Major Consumer Electronics Appliance Distributor Association
|
Medium |
| Risks related to housing quality assurance | Although housing quality is thoroughly controlled, if a serious quality-related problem arises due to unforeseen circumstances, it may have a significant impact on business performance and financial position. |
Use of materials that comply with laws and regulations, development of proper construction systems
Training to raise employee awareness of quality assurance
Quality assessments and analysis of demands through customer surveys, etc.
Quality inspections by third-party agencies
|
High |
| Overseas expansion | In store development centered on Southeast Asia, changes in the internal political situation in each country, national conflicts, demonstrations, and other events could cause closures or make it difficult to continue operations, which could affect the Group’s business performance and financial position. |
Close communication with business partners and suppliers familiar with the local economy, environment, customs, etc.
Establish a system to make timely and appropriate business
|
Medium |
In risk identification, we comprehensively bring to light the conceivable risks, and in risk analysis and assessment, we evaluate the frequency of occurrence and the degree of impact of these risks and decide on a policy.
YAMADA HOLDINGS established business continuity plan (BCP) management rules in preparation for largescale disasters, etc., and regularly reviews and revises these rules. A system has been established to minimize damage in the event of an emergency, with for example, setting up an emergency management HQ at headquarters and appointing people to share information at each business site. Moreover, YAMADA HOLDINGS and YAMADA DENKI carry out disaster prevention drills and manual-based training at the headquarters and at each store, to ensure an appropriate initial response while securing the safety of its customers in the event of an emergency, such as an earthquake or fire. In December 2024, we introduced a safety check app exclusively for employees of the Group.