Risk Management

For information about our management approach and initiative for risk management, please see here(PDF:183KB)pdflink.

List of Risks

Risks Covered

The Kawasaki Group defines risks as “factors or phenomena that hinder the execution of business operations or the achievement of organizational goals” and works to manage all risks classified as either external risks or internal risks (with the latter further classified as strategic risk or business risk), while giving due consideration to the potential beneficial effects associated with strategic and other risks.

List of Risks Covered

Risk category Risk name
External risk
Hazard Large-scale disaster
Accident (caused by third party)
Politics/Society Government or social stability
Legal or regulatory amendment
Technology Technological innovation
Market environment Competitor companies
Customer needs
Economic Economic recession
Stakeholders Shareholders/activists
Harmful rumors
Human rights issue Child labor/forced labor
Vision Effectiveness of vision
Decision making Expansion into new business areas
Capital investment
Research and Development
Corporate acquisition/merger
Organization Effectiveness of organizational structure
Brand Kawasaki Value (brand)
Corporate governance Supervising of management
Business risk
(by division)
Sales Sales strategy
Collection of accounts receivable
Customer response
Development Development themes
Development capabilities
Design Design not coordinated with other
relevant divisions
Design capabilities
Design quality
Procurement Enforcement of CSR Procurement
Procurement at appropriate price
Securing of stable procurement
Management of procurement
Warehouse Inventory management
(materials, work in process, products)
Production Insufficient production capacity
Production process management
Production facilities
Engineering operations Management of individual
commissioned projects
Quality assurance Deficient product servicing
Logistics Management of logistics channels
Export and import procedures
Overseas Country risk
Business customs
Domestic operating
Specific local conditions
Accounts Accounting methods
Financial reporting
Tax affairs
Financial affairs Interest rate rise
Foreign exchange rate fluctuation
Capital procurement
Financial management
Management of pension assets
Company stock
Credit rating
Management Budget/planning/management
Evaluation of business performance
Consistency of goals and strategies
Public relations Media response
Legal affairs Contract conditions
Response to legal action
Information processing/
Information leakage
Network/system failure
Information infrastructure
CSR CSR activity
External reporting Evaluation of internal controls
Information disclosure
Environment CO2 emissions
Environmental pollution
Compliance Irregular action by organization
Irregular action by employees
Compliance with corporate ethics,
social norms, laws and regulations
Anti-monopoly and fair trade laws
Export management
Social contribution Social contribution activity
Business risk
Personnel/labor Human resources/
personnel deficiency
Safety and health management
Labor management
Personnel employment conditions
Human rights issues
Business operations Management capabilities
Affiliated company management
Operational efficiency
Intellectual assets
Intellectual property
Operational alliances
Information sharing
Credit management
Work environment


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