{"id":26,"date":"2014-05-19T11:58:06","date_gmt":"2014-05-19T02:58:06","guid":{"rendered":"http:\/\/www.valuecommerce.co.jp\/en\/?page_id=26"},"modified":"2026-03-31T20:25:00","modified_gmt":"2026-03-31T11:25:00","slug":"risk_factors","status":"publish","type":"page","link":"https:\/\/www.valuecommerce.co.jp\/en\/sustainability\/risk_factors\/","title":{"rendered":"Risk Factors"},"content":{"rendered":"

Business risks<\/h2>\r\n
\r\n

With respect to the matters described in the securities report, including those pertaining to the status of business and accounting, the Company recognizes the following factors as the main risks that may have a material impact on financial conditions, business performance and cash flows of the Company on a consolidated basis.
\r\n This description may contain forward-looking statements on future results and projections. These are based on information available to the Company as of December 31, 2025.<\/p>\r\n\t

\r\n\t\r\n\t\r\n\t\r\n\t\r\n\t\r\n\t\r\n\t\r\n\t\r\n\t\r\n \r\n\t\r\n\t\r\n\t\r\n\t\r\n\t\r\n\t\r\n\t
Financial risk<\/th>\r\n\tFrequency or probability of occurrence<\/th>\r\n\tDegree of impact<\/th>\r\n\tRelated opportunity and risk
(\u25cb Opportunity, \u25cf Risk)<\/th>\r\n\t		Key initiative<\/th>\r\n\t<\/thead>\r\n\t
Revenue base<\/th>\r\n\t2<\/td>\r\n\t8<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Difficulty in securing profits due to the inability to maintain the existing profit structure due to changes in the revenue base.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Develop profit plans optimized for the current cost structure.<\/li>\r\n
  • Build a flexible organizational framework.<\/li>\r\n
  • Consider new business initiatives.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n \r\n\t
Business model<\/th>\r\n\t3<\/td>\r\n\t3<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Differentiation from competitors by expanding original tracking technologies.<\/li>\r\n\t\t\t
  • Difficulty calculating advertising effects due to the restrictions on cookie-based tracking.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Conduct surveys on trends in tracking regulations, browser vendors and the World Wide Web Consortium (an organization established to expand the standardization of various types of internet technologies).<\/li>\r\n\t\t\t
  • Develop original tracking technologies and consider workaround measures.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n\t\r\n\t
Business strategy<\/th>\r\n\t1<\/td>\r\n\t8<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Improved profitability through higher value-added offerings and differentiation.<\/li>\r\n\t\t\t
  • Decline in profitability due to insufficient or delayed responses to changes in the business environment.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Promote a differentiation strategy through data utilization and advanced product development.<\/li>\r\n\t\t\t
  • Make selective investments in priority areas.<\/li>\r\n\t\t\t
  • Diversify the revenue structure.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n\t\r\n\t
Business continuation\/Cyber security<\/th>\r\n\t1<\/td>\r\n\t8<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Suspension of services or interruption of operations that may materially affect business continuity, including information leakage, data destruction or alteration, due to human errors in operations or intentional illegal acts, system failures caused by disasters, malware infections, targeted attacks, ransomware attacks that encrypt core systems and critical data, double extortion involving information theft and disclosure, and\/or exploitation of vulnerabilities in systems or products.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Establish an organization for system management and operate it continuously.<\/li>\r\n\t\t\t
  • Implement backups periodically.<\/li>\r\n\t\t\t
  • Check information on vulnerability and implement countermeasures.<\/li>\r\n\t\t\t
  • Monitor and defend against unauthorized access resulting from external cyber attacks.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n\t\r\n\t
Business continuation\/
Crisis response<\/th>\r\n 		1<\/td>\r\n 8<\/td>\r\n \r\n
    \r\n
  • Difficulty in ensuring business continuity due to the concentration of physical resources (servers, etc.) and information systems in Tokyo, in the event of large-scale disasters, etc.<\/li>\r\n <\/ul>\r\n <\/td>\r\n
\r\n
    \r\n
  • Facilitate the decentralization and multiplexing of data centers through the use of multiple cloud services.<\/li>\r\n
  • Consider the possibility of deployment in other areas.<\/li>\r\n
  • Clarify restoration measures to be taken in the case of failures.<\/li>\r\n <\/ul>\r\n <\/td>\r\n <\/tr>\r\n \r\n\t\r\n\t
Business continuation\/large-scale disasters<\/th>\r\n\t1<\/td>\r\n\t8<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Impact on business performance due to suspension of services in the event of an emergency disaster.<\/li>\r\n\t\t\t
  • Impact on business performance due to delays in post-disaster business recovery efforts.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Formulate a BCP with an awareness of remote work.<\/li>\r\n\t\t\t
  • Periodic BCP training.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n\t\r\n\t
Management of personal information<\/th>\r\n\t1<\/td>\r\n\t8<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Leakage of the personal information of users due to intentional attacks\/errors of related parties of the Company or the contractor, attacks by a third party with malicious intent, or unforeseen situations.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Ensure compliance with operation rules for the maintenance and management of ISMS certification-based security levels.<\/li>\r\n\t\t\t
  • Implement the full-scale security check process.<\/li>\r\n\t\t\t
  • Continued education for employees.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n\t\r\n\t
Data governance<\/th>\r\n\t1<\/td>\r\n\t8<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Increasing trust in data governance.<\/li>\r\n\t\t\t
  • Improved operational efficiency, higher productivity, and strengthened competitiveness through the use of AI under appropriate AI governance.<\/li>\r\n\t\t\t
  • Loss of trust and customer churn due to problems in data acquisition methods and data management caused by poor data governance.<\/li>\r\n\t\t\t
  • Adverse impact on the reliability of business activities due to the generation of misinformation, discriminatory or inappropriate outputs, infringement of intellectual property rights or personal information, and noncompliance with laws and regulations, caused by insufficient AI governance such as usage policies and management frameworks for AI technologies.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Development of operational rules for data governance and review of terms of agreement.<\/li>\r\n\t\t\t
  • Educate employees on data governance.<\/li>\r\n\t\t\t
  • Establish a Basic Policy on AI Ethics and AI Use Guidelines.<\/li>\r\n\t\t\t
  • Conduct risk assessments and monitoring when using AI.<\/li>\r\n\t\t\t
  • Educate employees on AI governance.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n\t\r\n\t
System failure<\/th>\r\n\t1<\/td>\r\n\t8<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Loss of sales or overcharging due to calculation\/aggregation errors resulting from system malfunctions, specifications, or operational errors.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Ensure that development processes are reviewed and tests are implemented.<\/li>\r\n\t\t\t
  • Use data with high accuracy.<\/li>\r\n\t\t\t
  • Conduct monitoring periodically.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n\t\r\n\t
Investment strategy<\/th>\r\n\t2<\/td>\r\n\t3<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Expansion of business domains with M&A and new businesses.<\/li>\r\n\t\t\t
  • Impact of delays in the recovery of the cost of investments and loans in M&A and new businesses, which may be caused by changes in the market or competitive environments, on consolidated results, growth, business expansion, etc.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Carefully study and consider synergies with the Company’s existing businesses, business plans, composition of finances, contractual relations, etc. in M&A and investment in new business.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n \r\n\t
Dependence on Specific Services<\/th>\r\n\t2<\/td>\r\n\t3<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Decline in business performance due to a reduction in transactions with the Company resulting from a change in the business policy of a major business partner.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Diversify business partners and strengthen new client acquisition efforts.<\/li>\r\n
  • Plan and develop services that are deeply embedded in clients\u2019 business processes and revenue models, making them essential to operations.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n \r\n\t
Technology Infrastructure<\/th>\r\n\t2<\/td>\r\n\t3<\/td>\r\n\t\r\n\t\t
    \r\n\t\t\t
  • Increased maintenance difficulty, greater risk of failures, and difficulty in securing technical personnel due to the continued use of aging technology infrastructure.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t
\r\n\t\t
    \r\n\t\t\t
  • Gradually transition to next-generation technology infrastructure.<\/li>\r\n
  • Replace equipment with up-to-date devices in phases.<\/li>\r\n
  • Ensure stable operation of existing systems.<\/li>\r\n
  • Operate existing systems in parallel with next-generation infrastructure during the transition.<\/li>\r\n
  • Renew and strengthen the development organization and technologies.<\/li>\r\n\t\t<\/ul>\r\n\t<\/td>\r\n\t<\/tr>\r\n\t\r\n\t<\/tbody>\r\n\t<\/table>\r\n<\/div>\r\n<\/section>\r\n\r\n\r\n
    \r\n

    Frequency or probability of occurrence, and degree of impact<\/h3>\r\n

    The criteria for selecting the levels of \u201cfrequency or probability of occurrence\u201d and \u201cdegree of impact\u201d are as follows.<\/p>\r\n

    Frequency or probability of occurrence<\/h4>\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n
    Level<\/th>\r\n Criteria<\/th>\r\n <\/thead>\r\n
    1<\/th>\r\n (Low)
    \r\n Occurrence around once every five years, or high probability of occurrence within the next five years\r\n <\/td>\r\n <\/tr>\r\n
    2<\/th>\r\n (Occasional)
    \r\n Occurrence around once every one or two years, or high probability of occurrence within the next one or two years\r\n <\/td>\r\n <\/tr>\r\n
    3<\/th>\r\n (High)
    \r\n Occurrence around once every six months, or high probability of occurrence within the next six months\r\n <\/td>\r\n <\/tr>\r\n
    4<\/th>\r\n (Frequent)
    \r\n Occurrence around once every one or two months, or high probability of occurrence within the next one or two months\r\n <\/td>\r\n <\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n

    Degree of impact<\/h4>\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n
    Level<\/th>\r\n Criteria<\/th>\r\n <\/thead>\r\n
    1<\/th>\r\n (Slight)
    \r\n Risk to the effect of \u201cthere being some minor impact on business \/ the impact on business not being direct\u201d\r\n
      \r\n
    • Impact on revenue
      Minor loss of around 1% regarding major management indicators such as net sales, or no direct impact<\/li>\r\n
    • Impact on trustworthiness
      Very limited impact due to inquiries from customers and so on, or almost no impact, etc.<\/li>\r\n <\/ul>\r\n <\/td>\r\n <\/tr>\r\n
    3<\/th>\r\n (Limited)
    \r\n Risk to the effect of \u201cthere being a certain level of impact on business\u201d\r\n
      \r\n
    • Impact on revenue
      Loss of around 5% to 10% regarding major management indicators such as net sales<\/li>\r\n
    • Impact on trustworthiness
      Sustaining of certain degree of damage due to reporting of scandal or accident by some media outlets, limited impact from uproar caused by post of social media user or the like, leakage or loss of information that is not secret or confidential, minor suspension of services, etc.<\/li>\r\n <\/ul> \r\n <\/td>\r\n <\/tr>\r\n
    8<\/th>\r\n (Significant)
    \r\n Risk to the effect of \u201cthere being a major impact on business management over the long term \/ the continuation of major businesses being in danger\u201d\r\n
      \r\n
    • Impact on revenue
      Loss of around 20% regarding major management indicators such as net sales<\/li>\r\n
    • Impact on trustworthiness
      Sustaining of damage due to reporting and so on of scandal or accident by major media outlets, leakage or loss of information that is secret or confidential, major suspension of services, etc.<\/li>\r\n <\/ul> \r\n <\/td>\r\n <\/tr>\r\n
    10<\/th>\r\n (Serious)
    \r\n Risk to the effect of \u201cthe survival of business management being in danger\u201d\r\n
      \r\n
    • Impact on revenue
      Massive loss of around 60% or more regarding major management indicators such as net sales<\/li>\r\n
    • Impact on trustworthiness
      Sustaining of significant damage due to reporting and so on of scandal or accident by large number of major media outlets, large-scale leakage or loss of information that is secret or confidential, major suspension of services at level where recovery of such is difficult, etc.<\/li>\r\n <\/ul> \r\n <\/td>\r\n <\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n<\/section>","protected":false},"excerpt":{"rendered":"Business risks With respect to the matters described in the securities report, including those pertaining to t […]","protected":false},"author":5,"featured_media":0,"parent":3164,"menu_order":25,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/pages\/26"}],"collection":[{"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/comments?post=26"}],"version-history":[{"count":33,"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/pages\/26\/revisions"}],"predecessor-version":[{"id":3848,"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/pages\/26\/revisions\/3848"}],"up":[{"embeddable":true,"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/pages\/3164"}],"wp:attachment":[{"href":"https:\/\/www.valuecommerce.co.jp\/en\/wp-json\/wp\/v2\/media?parent=26"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}