RYOMO SYSTEMS CO.,LTD.

As projects in the software development and system sales fields grow larger in scale, strict adherence to quality (Q), cost (C), and delivery deadlines (D) has become the most critical challenge. Should unforeseen circumstances occur, there is a possibility of profitability deterioration due to delays or interruptions in development projects. The company strives to maintain QCD standards through company-wide monitoring and reallocation of management resources, but this risk cannot be completely eliminated.

While standardization and quality control enhancement are being promoted at each stage of the software development process and in operational services, there are cases where the planned quality level cannot be ensured due to unforeseen circumstances. This may result in product repairs, recovery work, customer compensation, opportunity losses, etc., potentially leading to a decline in social credibility and adverse effects on business performance. Although continuous efforts are being made to improve quality, the risk remains.

Securing and retaining personnel with specialized knowledge and advanced skills is a critical challenge for business continuity, and the company is focusing on recruitment and training as well as improving benefits and the workplace environment. However, if a large number of talented employees leave or if new recruitment becomes difficult, the ability to provide products and services may decline, potentially hindering business operations. Against the backdrop of intensifying competition for talent in the IT industry, this risk remains an ongoing challenge.

Threats such as information leakage and loss due to cyberattacks are becoming increasingly complex and sophisticated year by year. While measures such as obtaining ISMS and PMS certifications and conducting CSIRT activities are being implemented, complete defense remains difficult. Should information leakage or tampering occur due to cyberattacks, in addition to a decline in social credibility, substantial costs for post-incident response and damage compensation may arise, potentially having a significant impact on business performance. Continuous response to the advancement of security technology is required.

The company is working to prevent misconduct and unlawful acts by officers and employees through strengthening corporate governance, activities to instill management philosophy and ethical standards, and information security education, among other measures. However, if losses arise from malicious intent or gross negligence, or if acts causing public nuisance occur, the resulting loss of social credibility could make it difficult to continue transactions with customers, potentially affecting business performance. The company addresses this through continuous strengthening of its internal control systems, but the risk cannot be completely eliminated.

As digital technology innovation drives the construction of a digitally-premised society, providing information creation solutions to resolve customers' management challenges has been positioned as a strategic issue. The company is promoting the deployment of information creation solutions under its 10th Medium-Term Management Plan, but if it fails to generate solutions that propose new value, this could lead to a decline in competitiveness and affect business performance. Responding to the speed of technological innovation remains an ongoing challenge.