Risk Management

Basic Approach
Strategy
Risk Management
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Basic Approach

External risks have increased in recent years due to geopolitical risks, expanding information security threats driven by digital innovation, climate change, and other factors.

Our business environment also faces significant impacts from broader societal and economic conditions, including rising policy interest rates aimed at curbing inflation in various countries, higher tariffs, the weak yen, and major market changes. Failure to respond appropriately to risks arising from these factors could result in the loss of trust among customers, shareholders, and other stakeholders, and may lead to damages that affect the continuity of our company.

On the other hand, managing risks not only minimizes the impact of issues like fraud or accidents but also supports risk-taking as a means of executing business strategy.

The Nikon Group manages increasingly diverse risks while also addressing internal factors related to those risks, including failure to achieve targets under the Medium-Term Management Plan. In doing so, we accurately identify and prioritize key management risks, avoid and mitigate risks, and pursue appropriate risk-taking. Through these efforts, the Nikon Group supports business development aligned with management strategies while driving sustainable growth and ensuring long-term profitability.

Related Policies

Basic Policy on Internal Control System | Investor Relations

Strategy

The Nikon Group surveys risks identified internally and risks perceived externally to understand the risks facing the Group and identify key risks requiring close attention in business operations (including key strategic risks and key operational risks). Business units and administration departments identify key risks that have a significant impact on their respective operations under the Medium-Term Management Plan and incorporate these risks into their respective targets and measures.

Risk Management

The Nikon Group conducts the enterprise risk assessment survey each year to understand group-wide risks. This survey targets Nikon department managers and presidents of Group companies in and outside Japan to identify, analyze, and evaluate company-wide key risks and monitor response status.

Based on the survey results, we create a risk correlation map that takes into account response volume and degree of impact. We then use this map to identify key risks. The Risk Management and Compliance Committee determines which issues require enhanced efforts.

Management takes the lead in addressing identified material risks that affect company-wide strategies, while each business unit take the lead on risks specific to their respective businesses. Drawing on input from the Sustainability Committee, Quality Committee, Export Control Committee, and other related committees, the Risk Management and Compliance Committee identifies risks requiring the highest priority from a management perspective, directs the necessary response, and monitors progress. In April 2026, Nikon established the Information Security Committee under the Risk Management and Compliance Committee.

The Board of Directors receives these reports and supervises group-wide risks and overall management. The Internal Audit Department also conducts annual audits in accordance with the Global Internal Audit Standards to verify the adequacy of risk management.

Looking ahead, we will incorporate measures to address the identified material risks into our new Medium-Term Management Plan, while continuing to strengthen our risk management framework and mitigate risks based on the progress made by each business unit.

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Risk Management Education

Ensuring that each employee maintains appropriate risk literacy and pursues sound risk-taking is essential for companies. The Nikon Group believes that managers and senior employees in particular must maintain strong risk awareness and risk identification and management skills to avoid and mitigate management risks and pursue appropriate risk-taking.

With this belief in mind, the Nikon Group uses the annual Enterprise Risk Assessment Survey, conducted with Nikon department managers and presidents of Group companies in and outside of Japan, as an opportunity to raise awareness and understanding of risks. The Nikon Group also provide all employees with training on individual risk areas, including information security, competition law, foreign exchange and foreign trade laws, personal information protection laws, the Code of Conduct, insider trading regulations, and corporate tax calculations and tax compliance. We also incorporate compliance seminars for executives. In addition, the Nikon Group organizes regulations applicable to Nikon and Group companies, enters into management agreements to ensure compliance, and shares educational materials on our portal site to deepen understanding among responsible personnel.

BCM^* Activities Measures

The Nikon Group establishes BCM^* implementation guidelines and initial response manuals in preparation for large-scale disasters, infectious disease outbreaks, and other emergencies. We review these guidelines regularly.

We also review coordination systems among business units, plants, and subsidiaries on an ongoing basis to strengthen initial response and recovery capabilities during emergencies.

*Business Continuity Management (BCM): Typical management activities such as BCP formulation, updates, and maintenance, as well as the implementation of proactive measures, education, trainings, inspections, and continuous improvements.
Business Continuity Plan (BCP): A plan describing the policy, systems, procedures, etc., by which corporations can avoid suspension of critical business activities, or can restore critical business quickly if it is interrupted, even when unforeseen contingencies arise, including natural disasters such as major earthquakes, pandemics, etc.