Corporate risks in Japan’s SMEs on the rise: survey
Natural disasters, drop in sales are main risks SMEs could suffer from.
Corporate risks are rising in Japan’s small and medium sized enterprises (SMEs), with 60% saying risks have increased in recent years.
In a survey conducted by the General Insurance Association of Japan (GIAJ), 60% of SMEs feel an increase in risk. However, the result also showed that more than 30% have not taken measures.
The survey also said that one in four companies has experienced some damage. In some cases, the amount of damage is more than ¥100m ($90m). Some respondents have even claimed to have actually heard employees say that damage would never occur in their company.
The GIAJ said that the main risks SMEs said they would like to mitigate damage from by utilising general insurance are: natural disasters, drop in sales, and infectious diseases.
“Through the survey, we were able to understand the level of awareness of SMEs regarding diversified and complicated risks, what and how much the actual damage is, and the penetration status of general insurance. In order to realise a disaster-resistant society, we will utilise the survey results to implement various efforts to raise the level of penetration of business customers' insurance,” the GIAJ said.
GIAJ conducted a survey on risk awareness and countermeasures with the aim of understanding corporate risks. 1,031 SME managers and employees responded to the survey.