Key Risks and Opportunities

Approach to Risk management

The CSR theme "Risk" is based on the following policy.
"TAMRON prepares against risks that could threaten civic life or corporate activities, and does the utmost to prevent such risks from occurring. Should any such crisis occur, we will make every effort to minimize damage and loss, effect a swift recovery, prevent recurrences and fulfill our social responsibility."
We manage risks by implementing risk management from both the risks and growth opportunities that should be prepared for our sustainable growth.

Related SDGs

Related SDGs

11.bBy 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons

Key Risks and Opportunities

Key Risks and Opportunities
Key Opportunities
Risk Factors Key Risks / Key Opportunities Response Methods
  • Shrinking digital camera market
  • Reliance on Photographic
  • Products Business
  • Reliance on specific customers

Contraction of the digital camera market

Reliance on Photographic Products Business and specific customers

Growth in the mirrorless camera market

Growth in the industrial camera market

  • Sales strategy specializing in interchangeable lenses for mirrorless cameras
  • Expanding sales in the growing market for industrial lenses
  • Actively investing in new businesses such as lense medical application
  • Rapid technological innovation

Decline in competitiveness when the development of cutting edge technologies or their application in products is not advanced as scheduled

Obtaining growth opportunities through the development of revolutionary technologies

  • Technology development and creation of new businesses based on medium- to long-term strategies
  • Open innovation between industry, academia and government
  • Investment in new businesses
  • Investment in M&A activities, etc.

Failures to investment in R&D and capital investment for new businesses

Actively tackling M&A activities utilizing a robust financial structure

Building the foundations of growth through new management resources acquisition

  • Strategies aimed at the full-scale commercialization of medical products
  • Engaging in analysis and discussion in the Management Meeting and Board of Directors from a range of perspectives including market trends, strategy, acquisition prices and potential risks
  • Product supply and demand

Fluctuating product prices, too much or too little inventory

Lack of procurement of glass materials

  • Properly responding to fluctuating demand in each region and controlling production
  • Multiple purchases and understanding alternative supplier candidates
  • Geopolitical risks

Expanding various impacts due to global political, social and economic trend

  • Continually monitoring the global political, social and economic climate to analyze the impact in relation to corporate activities
  • Climate change and global environmental issues

Impact on production activities due to damage to plants in Japan or overseas

Burden from carbon taxes and renewable energy purchase costs

Increased order opportunities due to responding to decarbonized society at an early stage

  • Implementation of strategies based on the Environment Vision 2050 (energy saving and introduction of renewable energy)
  • Action and continual improvement based on business continuity planning (BCP) in Japan and overseas
  • Securing human resources

Impact on new hires and continuing employment due to intensifying competition to hire and retain talented human resources

Obtaining growth opportunities by hiring and retaining the employment of talented human resources

  • Job-specific hiring, positional and grade systems, systems to solicit positional applications internally
  • Creating a comfortable workplace environment by promoting a healthy work-life balance and diversity
  • Promoting health and productivity management
  • COVID-19 pandemic

Impact of stagnant economic activity on business performance

Impact of decreasing demand on production activities

Impact on health and safety of employees and stakeholders

  • Building and operating a remote product development framework
  • Development of work-at-home and telework environment
  • Complicity in human rights abuses

Boycotts due to direct or indirect complicity in human rights abuses, impact on corporate activities due to legal violations

  • Formulation of a human rights policy and implementation of human rights due diligence
  • Request to supplier and confirmation through self-assessment questionnaires
  • Risks unique to the interchangeable lens business

Defects due to improper matching between lenses and cameras

  • Quality assurance inspections before product shipments
  • Handling the overwriting of firmware after shipping
  • Product quality and safety

Damage to brand value due to declining product quality or defects

  • Building and improving quality assurance systems compliant
  • Taking action and preventing release when quality defects occur
  • Information security

Leaking of corporate information and personal information due to damaged information system functions caused by computer viruses and the like

  • Developing information security systems
  • Implementing management based on an information security policy
  • Compliance

Damage to corporate value due to corporate behavior that violates laws or diverges from social normal, such as infringements upon intellectual property rights, bribery, and so on

  • Building compliance management systems
  • Disseminating and ensuring observance of the Compliance Code of Conduct

Risk Management System

The political and economic conditions surrounding Tamron, along with the broader business environment, are changing with each day. Tamron implements risk management and controls risks based on both aspects, namely the risks that need to be prepared for to ensure Tamronʼs sustained growth, as well as growth opportunities themselves.

With the aim of designating risk management policies, systems and methods of operation, preventing or systematically mitigating risks in the short-, medium- and long-terms and implementing related measures, the Risk Management Committee, whose members include full-time directors, full-time Audit & Supervisory Board Members and executive officers, meets twice a year in principle. The committee makes decisions on and deliberates over basic matters and policies for the promotion of risk management.

Risk Management System

Business Continuity Planning (BCP) Initiatives

TAMRON has established “Emergency response regulations,” “basic business continuity plan” and other rules to minimize damage and ensure business continuity and an early recovery from key risks such as major earthquakes, and is continuously improving its risk management system.

Target・Result

Key CSR Issues 2022 Results 2023/Mid-Term-Goals
Preparing for major disasters Creation of an earthquake initial response manual Running of safety confirmation response drills Conducted disaster response headquarters simulations