Business and Other Risks
The Aeon Group has designated risk management as a key management priority that all Group companies and organizational units are responsible for addressing. Under the direction of the Aeon Management Committee (Aeon’s highest management body), the Risk Management Committee discusses and decides matters concerning risks that cannot be addressed by individual companies.
Potential risk factors related to the Group's operations are described below. Forward-looking statements contained herein are forecasts based on the Company's judgment, targets, and assumptions as of the filing date of its latest securities report. Actual outcomes may differ from these forecasts. The risks enumerated below do not constitute an exhaustive list of all risks related to the Group’s operations.
Risks related to the Group’s operations.
In addition to such novel infectious disease epidemics, which can have enormous impacts on society, physical damage to stores and facilities due to major earthquakes, typhoons, tsunamis, or other natural disasters, fires, or unforeseen accidents in the vicinity of the Group’s stores and facilities; riots; terrorism; system failures due to computer viruses or other causes; or other events that affect the Group’s suppliers or its supply chain or logistics network could occur. To prepare for such events, the Group has taken measures based on a business continuity plan, including preparation of information infrastructure, setting up of disaster management bases, anti-seismic reinforcement of stores, and conclusion of disaster preparedness agreements with local governments. Nevertheless, any disruption of the Group’s sales, logistics, or supply-chain activities due to the occurrence of events that exceed the Group’s assumptions could adversely affect the Group’s operations, financial condition, or earnings.
Nevertheless, higher-than-expected energy expenses or countermeasure-related costs incurred due to tightening of legal regulations or growing societal demands relating to the environment, or significant changes in agricultural or marine product quality or yields in connection with climate change, could adversely affect the Group’s operations, financial condition, or earnings.