Risk Management
Basic Approach
JUKI identifies and assesses risks that could have a significant impact on its financial position, operating results, cash flows, and corporate value due to uncertainties and unforeseen events arising from changes in the business environment and management strategies. JUKI manages these risks to prevent their occurrence and minimize damagein the event of a crisis, thereby preventing the expansion of losses and business stagnation.
Risk Management Framework
JUKI has established and operates a risk management framework centered on the Management Strategy Council, which oversees strategic risks, and the Risk Management Conference consisting of executive officers and the heads of Business Units and Group companies.
For each identified risk, JUKI reviews its policies annually and conducts quarterly risk assessments and monitoring activities to maintain an up-to-date understanding of risk conditions. Significant matters are reported to and discussed by the Board of Directors, ensuring continuous improvement of the risk management framework. In the event of a crisis, JUKI has established a structure that enables a swift response, including the formation of a Crisis Management Task Force or a Crisis Countermeasures Headquarters according to the severity of the situation. In addition, based on the Three Lines Model, JUKI strengthens its company-wide risk management framework through proactive risk management by the First Line (Business Divisions), control and support by the Second Line (Management Divisions), and independent assurance and advice by the Third Line (Internal Audit Divisions).
Management of Significant Risks
To effectively identify and manage risks that may affect business operations, JUKI classifies risks into four categories: strategic risks, financial risks, hazard risks, and operational risks. Within these categories, risks related to political and economic conditions, quality assurance, environmental regulations, information security, trade security controls, compliance, and occupational health and safety are managed through annual policy reviews and quarterly risk assessments and monitoring activities in response to changes in the business environment.
Business Continuity Plan (BCP) Initiatives
JUKI has established a Business Continuity Plan (BCP) to ensure employee safety and enable the early recovery of business operations even in the event of a major disaster or emergency. The Company is also implementing initiatives to improve the effectiveness of its BCP.
Employee Safety Confirmation Drill
To ensure a prompt initial response in the event of a disaster, JUKI regularly conducts employee safety confirmation drills using a safety confirmation service under the assumption that an earthquake has occurred. In FY2025, the drills were conducted for the Tama Headquarters and affiliated companies, and the response status was reviewed and verified.
Disaster Preparedness Drills
JUKI conducts disaster preparedness drills to enhance employees’ ability to make appropriate decisions and take swift evacuation actions in the event of a disaster. In FY2025, simulation-based training was conducted for members of the in-house fire brigade and the disaster response headquarters. Through these exercises, participants reviewed and validated in practice fundamental emergency response procedures and evacuation guidance processes during a disaster.
Internal Training
Training for Risk Managers
To strengthen the company-wide risk management framework, JUKI conducts training for risk managers. The legal department takes the lead in promoting understanding of the fundamental principles and key considerations of risk response, thereby supporting the appropriate implementation of risk management practices in each department.
Harassment Prevention Training
JUKI conducts harassment prevention training to promote a harassment-free workplace. The training promotes understanding of the fundamental principles and key considerations related to harassment, helping maintain and enhance a safe and comfortable working environment for all employees.
Information Security Training
To enhance employees' information security awareness and response capabilities, JUKI conducts annual online training on its Information Security Policy and related regulations. The training helps employees understand the importance of information security and the need for appropriate security measures. From October to November 2025, the program was offered to eligible employees throughout the JUKI Group, with a completion rate of 95%.
Insider Trading Prevention Training
To ensure the proper management of material non-public information and fair trading practices, JUKI conducts insider trading prevention training. The training promotes understanding of the fundamental rules and key considerations that employees and officers must observe, helping to reinforce awareness of legal and regulatory compliance throughout the organization.
Freelance Act Compliance Training
In response to the Freelance Act, JUKI conducted training beginning in FY2026. The training promoted understanding of the basic approach and key considerations for business transactions, helping to ensure fair transaction practices.