JFE Systems, Inc.

As the company serves customers across diverse industries including manufacturing, distribution, finance, and services, customer IT investment and demand trends, which are influenced by domestic economic conditions, directly affect operating results. Order competition with competitors also affects profitability. As a countermeasure, the company grasps and forecasts customer demand trends and allocates personnel appropriately, implementing measures to minimize the impact on operating results.

In information system construction under contract agreements, if technical or quality-related risks materialize, delays in the development schedule or increases in development costs may occur, potentially worsening operating results. The company has established a project evaluation meeting body based on its internal regulations to support risk assessment and project management, striving to prevent risks from materializing.

If leakage of personal information or confidential information obtained from client companies, intrusion of computer viruses from outside, or infringement of intellectual property rights occurs, it may lead to a decline in social credibility, litigation, damages claims, and other situations that could affect operating results. As a countermeasure, the company participates in JFE-SIRT, the information security incident response team for the JFE Group as a whole, contributing to strengthening information security across group companies.

If employees or major business sites and facilities suffer significant damage due to large-scale natural disasters such as earthquakes or the outbreak of infectious diseases, business activities may be constrained, potentially affecting operating results. As a countermeasure, the company promotes various measures for business continuity, including establishing a work-from-home system for employees and partner company employees, and securing necessary information and communication equipment.