Risk Factors

The following is a list of risk factors involving business operations, accounting and other items concerning business activities that may have a significant influence on decisions by investors. Items concerning the future are based on judgments by management as of the date the Securities Report was submitted (May 30, 2018).

(1) Restrictions imposed by laws and regulations
(2) Revisions to Japan’s social security system
(3) Recruiting workers used for temporary placements
(4) Mergers and acquisitions
(5) More intense competitive environment
(6) Natural disasters and IT system malfunctions
(7) Handling of personal information
(8) Handling of confidential information
(9) Ability to recruit workers

Business Continuity Planning

Business process outsourcing (BPO), which is the primary business of Careerlink, helps national and local governments and their agencies hold down expenditures. BPO is also critical to the ability of companies to use resources solely for their core businesses. By contributing to the vitality of Japan’s economy and industries, BPO plays a key role in Japan’s overall social progress. Due to the importance of BPO, Careerlink has a firm commitment to business continuity planning (BCP) in order to continue providing BPO services that meet customers’ requirements even after a natural disaster or some other emergency.

Risk Management

The human resource services industry performs services by supplying people. As a result, the success of this industry depends on the ability to recruit individuals for temporary placements who have the specialized skills and experience needed for their assignments. Furthermore, the provision of services demands a high level of reliability and strict compliance with all applicable laws and regulations. Receiving and storing a large volume of personal information about individuals for temporary placements and other people are essential to conducting this business. Careerlink has a rigorous program for compliance with laws and regulations as well as with ethical guidelines, takes steps to upgrade data security, and uses other measures to reduce or eliminate exposure to a variety of risk factors.