Business and Other Risks

Guidelines & Structure

The Fujitsu Group aims to achieve business continuity, enhanced corporate value, and the sustainable development of corporate activities. Uncertainties that might affect the achievement of these objectives are considered to be risks. To address these risks, the Fujitsu Group established a Risk Management & Compliance Committee based on the Policy on the Internal Control System determined by the Board of Directors. The committee reports directly to the Board of Directors and oversees risk management and compliance for the entire Fujitsu Group.

Chaired by the CEO and composed of Board Members, the Risk Management & Compliance Committee continually assesses and verifies risks that could result in losses to the Fujitsu Group, and implements risk control measures such as formulating preventive measures for materialized risks in business execution. To minimize losses arising from the materialization of risks, and in an effort to prevent their recurrence, the committee regularly analyzes the risks that have materialized and reports to the Board of Directors.

In addition, the Risk Management & Compliance Committee has established a Regional Risk Management & Compliance Committee in each region outside of Japan to operate as subordinate committees in a global structure. The committee also assigns risk management & compliance officers to the business units, group companies and regions for both Japan and overseas. These organizations collaborate to build a risk management and compliance structure for the entire group.

Furthermore, to strengthen the risk management functions of the Group, we created the Corporate Risk Management Office, which reports directly to the CEO and is independent of the business units. This body carries out the secretariat functions of the Risk Management & Compliance Committee and, under the leadership of the Chief Risk Management Officer (CRMO), is responsible for interpreting risk-related information and spearheading rapid, appropriate responses where required.

Based on the initiatives taken to date, we have newly appointed a Chief Quality Officer (CQO) as the person responsible for quality for the entire Group, as we believe that Companywide and cross-organizational measures led by top management are more essential than ever to further strengthen measures and ensure effectiveness. Furthermore, we have enhanced the structure and functions of our Risk Management & Compliance Committee, chaired by the CEO, and strengthen this framework to ensure constant and thorough Companywide responses.

Specifically, the CQO will be newly added to the members of this committee, which has been the venue for deliberations on important risk compliance issues related to the Group. A framework is established in which concrete measures are determined and promptly implemented, including Companywide measures related to information security and system quality, as well as responses to individual events. By establishing such a framework, we can thoroughly implement risk management led by the CEO, which assigns more strengthened authority than ever to the CISO and CQO to supervise the process, including different CxO areas such as personnel systems and investment resources. Additionally, to ensure the rapid and effective implementation of measures, the committee is held every month.

Potential Risk Management Processes

After identifying and reviewing the key risks associated with business activities from among the various risks around the Group’s operations, every year we investigate, analyze, assess, and visualize the possibility of key risks occurring, the potential impact, the status of measures, and so on.

Based on the assessment outcomes, the Risk Management & Compliance Committee confirms the key risks, issues instructions on further measures, and reports to the Board of Directors. The policies and measures determined by the committee are fed back to the entire Group, and the risk management departments established for each key risk then appropriately manage the measures across the Group as part of efforts to minimize risks.

Information obtained through the potential risk management process is disclosed to stakeholders via such documents as securities reports and the Fujitsu Group Sustainability Data Book.

Through these processes and quarterly confirmation by the risk management departments, we are working to reduce risks for the Fujitsu Group and to minimize the impact of risks that do materialize.

Please note that the following does not cover all risks of the Group. This section contains forward-looking statements as determined by the Companies as of the date of submission of the Annual Securities Report (June 26, 2023).

I. Relationship with management policies and strategies

In order to achieve our management goals, we are implementing various measures described in "Management policy and issues to be addressed". Major risks that may directly affect these measures and their countermeasures are described in the following sections, 1 ~ 6, 8, 11 and 13, in consideration of their relevance to our management policies and strategies.

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