Corporate risks in Japan’s SMEs on the rise: survey

Despite seeing the increased risks, 30% of the SMEs are yet to take measures.

Corporate risks are rising amongst Japan’s small- and medium-sized enterprises (SMEs), a survey conducted by the General Insurance Association of Japan (GIAJ) revealed.

Of the 1,031 SME managers and employees surveyed, 60% feel an increased risk in recent years. However, 30% of them have not taken measures.

The survey also found that one in four companies has experienced some damage. In some cases, the amount of damage is more than ¥100m ($90m).

Based on the survey, 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.