Emerging Risks
We define "emerging risks" as those that currently pose a low likelihood of significantly impacting our business but may materialize in the future. These risks are characterized by high uncertainty, making it difficult to predict when they might arise or how severe their impact could be. At the Ricoh Group, we are committed to identifying such risks at an early stage and proactively advancing efforts to assess and implement mitigation strategies.
1. Securing Specialized Talent Amid Accelerated AI Adoption
With the rapid and transformative evolution of IT and AI technologies particularly generative
AI The Ricoh Group sees the ongoing changes in work styles and communication, especially in the post-COVID era, as a strategic opportunity to drive our transformation into a digital services company.
At the same time, as global digital competition intensifies and expectations grow for productivity gains through generative AI, falling behind in technology adoption could lead to diminished competitiveness and missed business opportunities. Furthermore, the use of generative AI
carries inherent ethical and legal risks, including potential intellectual property violations, the generation of false or biased information, and misuse for malicious purposes. Addressing these risks is essential.
To maintain our technological edge while upholding AI ethics, securing highly skilled and specialized talent is critical. A shortage of such resources could undermine the sustainability and competitiveness of our transformation over the long term.
Business Impact
To grow revenue and recurring income in our digital services business and to maintain high capital efficiency, we recognize the need to continuously enhance both our service offerings and internal operations in line with technological advancements in IT and AI.
If we are unable to secure the necessary talent to support this foundation, not only could the long-term growth of our core digital services business be compromised, but issues such as IP
infringement or the spread of misinformation could lead to legal disputes or reputational damage, posing significant risks to our business operations.
Mitigation Measures
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We are actively developing AI talent through initiatives such as digital academies and reskilling programs.
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We are also promoting awareness and education around AI ethics by setting technology ethics goals and engaging in related initiatives for all stakeholders involved in the development, deployment, and use of AI.
2. Security Risks from a Global Perspective
In today's global business environment, there has been a notable increase in security breaches targeting affiliated companies or business partners, which in turn can lead to attacks on the headquarters of those organizations. The Ricoh Group is not immune to such threats, and the scope of our security measures continues to expand accordingly.
Moreover, with the widespread adoption of remote work driven by workstyle reforms, employees now have greater flexibility in how and where they work. As a result, the range of potential threats has broadened beyond cyberattacks to include internal risks such as data leaks caused by employees or other insiders.
Business Impact