Business Risks and Risk Management

Infectious disease epidemics, natural disasters, and abnormal weather

Our business performance may be affected by event cancellation and postponement, as well as reduction in attendance.

• Thorough infection prevention measures for customers and those involved with public performances
• Use of online event
• Use of systems to help with the costs of hosting events

Artist

Our business performance may be affected if activities are cancelled, changes occur in contract details, or if a violation of law or disreputable action occurs.

• Enhancement of artist portfolio
• Provision of compliance training

Changes in business performance due to activity plans

Our quarterly or fiscal performance may be variated significant, depending on factors such as when concerts take place or when some works are released as we plan for the best timing for our artists, their works, and our customers.

• Improvement of the stock revenue model

Making hits

Our business performance may be affected if investments are not recovered as planned for an artist because predictions are difficult for this business.

• Discover artist's talent and enhance functions to maximize this talent

Human resources

Our business activities may be affected if recruitment does not proceed according to plan or if there are resignations.

• Employment new graduates on a regular basis
• Environmental improvements through workstyle reform and training, etc.

Investment, production, and purchasing of content

Our business performance may be affected if quality content cannot be acquired, if the period for return on investments is longer than expected, if returns cannot be offered, etc.

• Improvements in profitability through screen rights and online streaming rights etc.

Information diffusion through social media, etc.

Our business activities may be affected if the information is spread as negative information.

• Formulation of guidelines
• Implementation of regular training

Infringement of IP rights

Our business performance may be affected if owned IP rights are infringed upon by a third party or if we unintentionally infringe upon the IP rights of a third party.

• Establishment of an infringement report form on our official website
• Management of rights by a dedicated department
• Provision of training

Development of overseas business

Our expected revenue may not be secured because of laws, regulations, international relationships, etc.

• Rapid responses based on local information provided by overseas locations

New businesses

Our business performance may be affected if the business environment or unexpected difficult problems arise due to unforeseen problems.

• Establishment of departments to promote and manage new businesses

Cyberattack

Our business activities may be affected if our systems undergo a cyberattack.

• Centralized management of information and communications technology devices and our internal systems
• Securement of information security levels