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Business Risks
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This website contains information about business conditions, the financial situation, and other factors that may influence investor decisions. Forward-looking statements are based on the judgments of the LIXIL group of companies’ management as of March 2025.
Statements concerning the future and assumptions are subject to uncertainty and risks, and actual results may vary significantly.
Key Risks and Countermeasures
The Group defines "Strategic risks" as risks that affect or are caused by business strategies and strategic objectives, and "Operational risks" as risks that affect the implementation of strategic plans.
The results of the assessment are reported to the Risk Management Committee, which selects the Group's key risks and prioritizes the risks to be addressed. In addition, the committee regularly monitors key risks, reviews risk responses, and confirms progress.
In addition, risks that could have a significant impact on the business in the long-term future (three to five years or later) are identified as emerging risks and countermeasures are being promoted.
| Business Risk | Possibility of Occurrence | Degree of Impact * |
Changes in Materiality from the Previous Fiscal Year | |
|---|---|---|---|---|
| (1) | Risks related to changes in the economic environment and fluctuations in exchange rates and interest rates | High | High | Same level |
| (2) | Geopolitical risks | High | Middle | Same level |
| (3) | Risks related to the development of new products | Middle | Middle | Same level |
| (4) | Risks related to the procurement of raw materials | Middle | Middle | Same level |
| (5) |
Risks related to environment (Climate change, water, and resources) |
Middle | Middle | Same level |
| (6) | Risks related to business restructuring | Low | Middle | Same level |
| (7) | Risks related to competition with competitors and product prices | Middle | Middle | Same level |
| (8) | Risks related to the acquisition and development of human resources and the promotion of diversity | Middle | Middle | Same level |
| (9) | Risks related to sales channels | Middle | Middle | Same level |
| (10) | Brand risks | Low | High | Same level |
| (11) | Risks related to disasters, accidents and infectious diseases | Middle | High | Same level |
| (12) | Risks related to information and cyber security | High | High (Middle) | Increase |
| (13) | Risks related to intellectual property | Middle | Middle | Same level |
| (14) | Recoverability risk of deferred tax assets | Middle | Middle | Same level |
| (15) | Risks related to regulatory environment and requirements | Low | Low | Same level |
* For risks that the assessments have been changed from the previous consolidated fiscal year, the previous fiscal year's risk assessments are included in ().
For details of the LIXIL group's business and emerging risks, please refer to the PDF.
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