Risk Management
Makita strives to identify and manage risks with a material impact on business activities, while also pursuing our commitment to being a company that is resilient to crises.
Makita’s Disclosure Committee, which identifies and investigates risks in the Group’s business activities, holds annual meetings. These meetings are attended by representative Directors, Directors in charge, Audit & Supervisory Committee Members, and General Managers of the Internal Audit Division and respective departments of the Company.
Each Director exercises authority and takes responsibility for implementing the Group-wide risk management framework in his or her own division, and also reports to the Board of Directors when a situation occurs that is material to business management. Also in each division, regulations and guidelines are stipulated and followed in order to carry out risk management necessary for quality control, disaster prevention, capital utilization, and the like.
Amidst concern in recent years over the occurrence of major earthquakes and other natural disasters, Makita recognizes that being able to respond to disasters is a critical issue. Makita has formed a Fire & Disaster Management Committee comprised of directors and the heads of relevant divisions and has formulated disaster prevention regulations with this committee at the center. These disaster prevention regulations and other measures, which are reviewed regularly, define steps for disaster prevention, emergency response measures, and disaster recovery efforts. Similarly, these regulations and measures outline a business continuity plan (BCP) for times of disaster. The target organizations and scope of this plan are also reviewed as necessary.
Risks & Opportunities Relevant to Makita
| Relevant Risks & Opportunities | Details | |
|---|---|---|
| Changes to the social/ market environment |
Risk | ・Deterioration of the market environment due to worsening economic conditions, social disorder, enactment or changes to laws and regulations, and the like |
| Opportunity | ・New demand accompanying environmental changes such as labor shortages and the post-COVID-19 “new normal” | |
| Natural disasters | Risk | ・Performance deterioration due to large-scale natural disasters, such as earthquakes, floods, fires, and so on • Drastic performance deterioration due to natural disasters in Japan and/or China, where our core business operations are concentrated |
| Opportunity | ・Increased demand for products and services that contribute to early recovery from natural disasters and peace of mind in times of disaster | |
| Global competition | Risk | ・Loss of competitive strength |
| Opportunity | ・ Improved profitability from consolidating competitive superiority | |
| Technology & products | Risk | •Decline in new product development able to meet changing market needs •Delays in product development attuned to market prices •Large-scale recall(s) due to unforeseen product defects; damage liability lawsuit(s); major decline in brand trustworthiness |
| Opportunity | •Improved brand strength due to delivering customer satisfaction •Demand creation and acquisition of growth opportunities through new products |
|
| Procurement | Risk | •Production shortages and rises in production material costs •Delayed launch of new product sales due to component suppliers not meeting Makita’s requirements, or due to taking too long to meet those requirements |
| Opportunity | ・Improved competitive strength and profits due to stronger relationships with suppliers and/or discovering new suppliers | |
| Relationships with major customers |
Risk | ・Loss of major customer(s) and a corresponding loss of opportunities to unlock sales channels • Deterioration of the financial position of customer(s) |
| Opportunity | ・Increased sales due to stronger relationships with major customer(s) | |
| Environment (incl. climate change) |
Risk | ・Strengthening/adoption of regulations related to global warming, climate change, and so on |
| Opportunity | ・Increased demand for environmentally friendly products that contribute to decarbonization | |
Building a Cyberdefense Structure
Amid the growing global risk of cyberattacks, since FYE 2022 we have endeavored to construct Group-wide security countermeasures. To meet the increasing sophistication of cyberattacks, we emphasize the prevention of deep intrusion through the early detection of cyberattacks and the enactment of measures for damage minimization and quick operational recovery.
Under Makita's current cyberdefense structure, we are working with experts outside the company to launch a global security task force. We centrally monitor about 14,000 information devices (as of the end of March 2025) across the Group to detect and analyze any suspicious behavior. Our structure enables quick first response, with any detected high-risk behavior immediately reported to the security task force and to subsidiaries holding affected equipment.
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