Risk Management
SHINDEN HIGHTEX has established Risk Management Regulations and Crisis Management Regulations, and it assesses risks in the table below. See SHINDEN HIGHTEX's securities report for more information about the risks in the table.
| Risk classification | Types of risk | |
|---|---|---|
| Strategic risks*1 | Cross-cutting environmental risks | (1) Impact of economic fluctuations |
| (2) Foreign exchange risks | ||
| (3) Geopolitical risks | ||
| (4) Impact of natural disasters, accidents, etc. | ||
| Business-specific risks | (5) Fluctuations of product supply-demand trends | |
| (6) High dependence on major suppliers (manufacturers) | ||
| (7) High dependence on major purchasers | ||
| Operational risks*2 | (8) Funding | |
| (9) Financial covenants regarding borrowings, acceptances and guarantees | ||
| (10) Information management | ||
| (11) Impact of inventory disposal and valuation | ||
| (12) Risks regarding the collection of accounts receivable | ||
- *1Strategic risks
- Risks that we choose to take to achieve sound business results through the formulation and implementation of business strategies
- *2Operational risks
- Risks that should be controlled to below a certain level in business operations stated in terms of the potential amount of damage and likelihood of occurrence.