Risk Management

Promotion of Risk Management
The Olympus Group is implementing risk management
initiatives to achieve its basic management policy, which
includes its corporate philosophy, company strategy, etc.
Specifically, based on the “Policy of Risk Management andCrisis Response” and related rules, the Olympus Group isundertaking risk management from the perspective of both“offense” through active and sound risk taking leading tosustainable growth and value creation for Olympus
Corporation and “defense” to prevent illegalities and accidents.
A crisis management process has also been establishedto minimize the impact of unforeseen incidents oncorporate value.

Risk Management
In terms of risk management systems, we have established aglobal risk management system, defined categories of risks
that could affect the achievement of Olympus Corporation’s
business targets as well as the company strategy, andidentified the executive officer responsible for each risk
category (establishing risk assurance). Each executive officer
executes the necessary measures (organizational structure,process preparation, focus measures, etc.) to keep within theacceptable range of their designated area of risk.
In April 2023, we launched a new organization to integrate
the four functions (Risk and Control, Compliance, Privacy,Information Security) related to GRC (Governance, Risk,Compliance). In order to enhance coordination among thedifferent functions, we have worked to further strengthen ourrisk management system with respect to execution capabilities.
In addition, risk management processes are operated witha plan-do-check-act (PDCA) cycle of risk assessment(identification, analysis and evaluation of risk, and setting
countermeasures), implementation of risk countermeasures,monitoring and reporting, and improvement. Risk assessment
is linked to the process for formulating the fiscal year plan, withrisk evaluated using common companywide evaluation
standards, and companywide risks visualized and uniformly
managed. Also, the status of response to the Olympus
Group’s key risks are periodically reported to the Olympus
Group Executive Committee (GEC), the Board of Directors,
and the Audit Committee.

Crisis Management
Any major incident that is highly likely to affect business
management in the Olympus Group is reported promptly tothe president and other senior management and handledappropriately by the managers in coordination with relevant
divisions. Furthermore, we continue to conduct annual training
exercises in anticipation of emergencies, ensuring the ongoing
review and refinement of response processes. Our aim is tominimize damages in the event of large-scale natural disasters
and similar incidents.
In terms of a business continuity plan (BCP), we strive todevelop practical plans that emphasize the value chain. To
support this, we have established the “BCP/BCM
Development Guideline” and consistently work on improving
BCP practices. Additionally, we conduct regular education andtraining programs to enhance the effectiveness of our BCP.
Moving forward, we will continue to prioritize the healthand safety of our employees, healthcare professionals,patients, and communities, while implementing the best
measures to maintain the supply of our products and services.

Risk Management Structure (FY2023)

Board of Directors

Audit Committee

Supervision

ReportOrder/Report on crisis

Chief Executive Officer

Crisis Response Team

Responsible for Group Risk Management(Activated in the event of a crisis)

Order/Report on risk managementin each division/function/region
Order/Report on enterpriserisk management

Head of Governance, Risk and Compliance

Executive Officers

Chief Officer of Risk Management

Responsible for own risk categories

Order/Report on enterpriserisk management operation

Order/Report on risk managementin each division/function/region

Risk and Control, Global

Each Division/Function/Region

Risk Management Promotion Office

Responsible for managing own risks

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Our Setup

Chapter 03

Risk Management

Risk Management to Achieve Basic Management Policy

Companywide List of Significant Risks

PlanDoFormulation of the Fiscal Year Plan

Business Execution

Policy, Goals, and Priority Measures

Implementation of Priority Measures

Risk Assessment

Risk Treatment

Risk identification, analysis, evaluation andsetting countermeasures

Implementation of risk countermeasuresthrough business execution

BusinessEnvironment

MarketPDCA

Act

Check

Review and Improvement

Management of Business Execution

Review for Policy, Goals, and Priority Measures

Progress Management for Business Execution

Review for Risk Recognition andCountermeasures

BusinessActivities

Monitoring and Reporting
Monitoring for the key risks
Updating internal/external environment recognition
Semi-annual reporting

Review through reporting to the Group
Executive Committee (GEC), the Board of Directors,
and the Audit Committee

Type

Impact/Urgency

Trend

Risks Associated with Medical Administration, Tightening of
Product-related Laws and Regulations and Prevention

Opportunities &ThreatsA↑

Risks Associated with Market Competition

Opportunities &ThreatsA↑

Risks Associated with Economic Environment

Opportunities &ThreatsC↑

Risks Associated with Foreign Currencies Exchange Rate Fluctuations

Opportunities &Threats

D↑

Risks Associated with Financing

Opportunities &Threats

D→

Risks Associated with Development Activities

Opportunities &ThreatsA→

Risks Associated with Supply Chain

Opportunities &Threats

A→Risks Associated with Business Collaborations, Corporate Acquisitions,
Sale of Business and Overall Investment and Others

Opportunities &Threats

A→ThreatsD→

CategoryOverallManagement

Significant Risks

Risk

Risks Associated with Compliance
Risks Associated with Litigation

Threats

D→

Risks Associated with Information SecurityThreatsA↑

Risks Associated with Human Resources

Opportunities &ThreatsA↑Threats

D→

Opportunities &Threats

C→ThreatsC↑

Risks Associated with Taxation
Sustainability Risks, Including Those Related to Climate andthe Environment

The Olympus Group conducts risk assessments at the time ofannual planning to identify significant risks that could significantly
affect the achievement of the company strategy and businessgoals. For risks that are particularly important from a companywide perspective, the management team consider their priority

based on their impact on our management and their degree ofurgency, and organize them into the following risk map toensure common awareness throughout Olympus. Please refer
to our website for details of each risks.
Business Risk

https://www.olympus-global.com/ir/policy/risk.html

Natural Disasters, Infectious Diseases, Civil War and Other Risks

Our awareness of the basic environment that affects the entire Olympus Group is provided below, and we identify risk andevaluate response policies both as an entire company and on an individual organizational level.

Companywide Significant Risk Map
Recent Changes in the Business EnvironmentA conomic Environment
ESustainability Risks, including Those Related to Climate
and the EnvironmentNatural Disasters, Infectious Diseases, War, Civil War andOther Risks

 isks Associated with Medical Administration, Tightening ofR
Product-related Laws and Regulations and Infection Prevention
Market Competition
Development ActivitiesSupply Chain
Business Collaborations, Corporate Acquisitions, Sale ofBusiness and Overall Investment and Others
Information Security
Human ResourcesHighCImpactDMiddle

 oreign Currencies Exchange Rate Fluctuations
FFinancing
ComplianceLitigation
TaxationMiddle

102

B

Olympus Integrated Report 2023

Urgency

Political

Geopolitical

The possibility of export controls on cutting-edge technologies caused by intensifying trade friction
between the U.S. and China impacting the business performances of the Olympus Group.
We have prepared response policies (BCP formulation, etc.) that considers war and conflict.

Economical

Macro-economy

Global inflation, interest rate fluctuations, and sudden exchange fluctuations rooted in complex factors
such as international economic friction, the levying of economic sanctions, shortages of key raw
materials, and deterioration in supply-and-demand balances.

SocialStakeholders

Demands from the standpoint of sustainability are increasing from global and regional stakeholders,
and the legal rulemaking around information disclosure is accelerating.

Technology

New technologies

Diversification of business models and competitors. Acceleration of DX and robotics, rapid
commercialization, evaluation of medical applications, and legal rulemaking for AI.

High103