Business Coach Inc.

Since human resource development investment by major client companies is affected by economic trends and corporate performance, if clients restrain investment during a deterioration of the domestic or overseas economic environment, this will directly impact the Group's business results. As countermeasures, the Group is promoting diversification of its customer base and diversification through HR tech services and new businesses, working to reduce dependence on specific industries and services and to make pricing more flexible.

Although the Company has a first-mover advantage in the business coaching field for major companies, there is a risk that increased entry by major consulting firms and others into this field could intensify competition and impact the business. As countermeasures, the Company is promoting a transformation of its business structure into a "producer of human capital management" that goes beyond mere coaching services, visualization of human capital through the use of outcome data, integration with HR tech, and differentiation through long-term account strategies.

If unforeseen events such as natural disasters, accidents, fires, or social infrastructure failures occur, business activities may be disrupted. As countermeasures, the Company is strengthening business continuity by standardizing online service delivery, establishing a BCP framework through remote work systems and backup sites, and enhancing business continuity through cloud migration of key systems and multiple data backups.

The recruitment and development of specialized personnel capable of resolving clients' HR and organizational issues as "producers of human capital management" is fundamental to business growth, and if personnel acquisition does not proceed as planned or key personnel resign, this will have a material impact on business operations. As countermeasures, the Company is building a flexible personnel supply framework combining enhanced in-house training programs and development systems, career path development, prevention of turnover through improved internal communication, and outsourcing/partner strategies.

If the Company conducts acquisitions through M&A in the future, and the acquired business's performance falls short of plan due to changes in the business environment or other factors, impairment losses on goodwill may occur, which could adversely affect business results. As countermeasures, the Company conducts enhanced due diligence prior to acquisitions and systematizes the post-acquisition PMI process, continuously monitoring the creation of business synergies and improvement of profitability.

As system development, such as the cloud coaching system, becomes more advanced and complex, there is a possibility that man-hours and additional work exceeding expectations will occur, leading to deteriorating profitability. As countermeasures, the Company thoroughly manages the balance between quality, delivery, and profitability through strengthened project management systems, optimized collaboration frameworks with external vendors, and prioritization management of feature development.

If inadequate handling by outsourcing partners occurs, this may lead to a decline in service quality, incurrence of additional costs, and reputational risk. As countermeasures, the Company has established systems for regular evaluation of outsourcing partners, contract management, and information sharing to maintain quality standards, while striving to secure stable outsourcing partners through partner development and cultivation.

If confidential information or personal information is leaked, this may result in a significant impact such as a decline in customer trust and legal liability. As countermeasures, the Company has strengthened its information management system through the establishment of a personal information protection framework based on obtaining Privacy Mark certification, enhanced access controls, and thorough information management education.

If litigation or intellectual property issues arise, this may result in a decline in social credibility and an adverse impact on business results. As countermeasures, the Company conducts risk management through strengthening its legal function and thorough contract review, while establishing a framework for preventive action and swift problem resolution in collaboration with external experts.