Sekisui House

1. Cultural barriers: International expansion brings the risk of failure when cultural barriers are not properly addressed and understood. Different business practices, social conventions and exchange rates can present challenges to the success of Sekisui House’s international projects.

2. Legal risks: Navigating unfamiliar legal and regulatory environments is a difficult task. Problems with local laws, labour laws, tax laws and environmental regulations can cause delays, fines or even criminal charges.

3. Financial risk: Expansion requires significant capital outlay in order to secure the necessary resources, personnel and expertise. This can lead to large financial losses if the investment is not successful.

4. Political risks: Political risks arise when governments enact policies that unintentionally hinder international business operations. This includes changes in tariffs, exchange rate policies, and in rare cases, nationalization of foreign businesses and assets.

5. Exchange rate risks: Exchange rate fluctuations can significantly affect profits and losses by changing the local currency value of the income and expenditure invoiced in foreign currencies. Sekisui House may also be exposed to hedging, currency option and forward contract risks.