Nomura Research Institute

1. Market/Industry Risk: Nomura Research Institute operates in the highly competitive and rapidly-evolving market of consulting and IT services. Changes in market conditions, regulations, or technology can have a significant impact on the company’s profitability.

2. Economic Risk: Economic downturns or slowdowns in key markets, currency fluctuations, and changes in interest rates can affect the demand for the company’s services and impact its financial performance.

3. Dependence on Japan: NRI operates primarily in Japan, making it susceptible to risks associated with the local market, including changes in government policies, economic conditions, and natural disasters.

4. Client Concentration Risk: The company’s revenue is heavily reliant on a few key clients, making it vulnerable to potential losses if these clients reduce or terminate their business relationship with NRI.

5. Data Privacy and Security Risk: NRI handles sensitive data and confidential information of its clients, making it vulnerable to data breaches and hacking attempts. Data privacy and security failures can damage the company’s reputation and result in legal and financial consequences.

6. Technology and Innovation Risk: As a technology-driven company, NRI’s success depends on its ability to continuously innovate and adapt to new technologies. Failure to do so can result in the loss of clients and competitive advantage.

7. Compliance and Regulatory Risk: NRI operates in a heavily regulated industry, and any non-compliance with laws and regulations can result in fines, legal action, and damage to the company’s reputation.

8. Talent and Human Resource Risk: As a knowledge-based company, NRI’s success and growth depend on its ability to attract and retain skilled and experienced professionals. Failure to do so can affect the quality of its services and harm its business.

9. Geopolitical Risk: NRI operates globally, making it susceptible to geopolitical risks such as trade tensions, political instability, and regulatory changes in the regions it operates in.

10. Reputation Risk: Any negative publicity, legal issues, or ethical lapses can damage NRI’s reputation and erode trust among its clients, partners, and stakeholders.