Aon Holdings Japan Co., Ltd.
Aon Global Risk Management Survey Top business risks in Japan are supply chain and distribution disruptions
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Aon plc (https://www.aon.com/) (NYSE: AON), one of the world’s leading professional services companies, announced today that it has published the Global Risk Management Study 2023
(https://www.aon.com/en/insights).
/reports/global-risk-management-survey) has announced the results of a Japanese survey
(https://www.aon.com/2023-global-risk-management-survey/japan). This survey is conducted once every two years and collects information from approximately 3,000 people, including risk managers, executives, and heads of human resources departments in 61 countries and regions, to clarify the most important management issues. This is our 17th year. Global Risk Management Survey 2023:
https://www.aon.com/en/insights/reports/global-risk-management-survey Business risks in Japan
“Disruption of supply chains and distribution”, which was ranked 10th in the responses of Japanese companies in the 2021 survey, has suddenly moved up the ranking and is now the top risk recognized by Japanese companies. This is thought to be largely due to delays in product production due to the recent semiconductor shortage. The rise in geopolitical tensions that are having a major impact on Japanese companies’ supply chains, and the “2024 logistics problem” caused by the cap on overtime hours for truck drivers starting in April 2024. You can also see the influence.
Next on the list was “Rapid changes in market trends,” which ranked first in the previous survey. Continuing from last time, the top risks that have been recognized are that Japanese companies view the aforementioned increasingly complex political situation, technological innovation using artificial intelligence, and accompanying digital regulations as unpredictable risks. This is thought to be a factor. “Cyber attacks/information leaks”, which was ranked 5th in the 2021 survey, has risen to the 3rd place among risks recognized by Japanese companies, and is recognized as a top risk globally. While we can see a global trend of gradually increasing awareness of the cyber threat landscape, it also ties in closely with supply chain, which ranked first, and business interruption, which ranked fourth. This is expected to become a risk that Japanese companies will be forced to take further action against.
Furthermore, according to the responses of Japanese companies, four out of the top five risks are also included in the global top 10; It is also clear that the ratio is low compared to the global market. Shinichi Kandate, head of Aon’s Commercial Risk Solutions Japan, said: “The delay in responding to these issues is one of the reasons why there is a large protection gap compared to Europe and the United States.In particular, damage caused by “business interruption” is one of the top 10 risks for Japanese companies, “supply chain and distribution It also derives from “interruption”, “cyber
attacks/information leaks”, “weather/natural disasters”, etc.We deal not only with physical damage to your company’s assets, but also with business interruptions caused by your company’s supply chain, etc. We need to consider this.”
Human capital becomes a top 10 risk
The survey further points out that in Japan, the issue of human capital is no longer just a “people issue”; in an era when lifetime employment is virtually disappearing, there is competition for human resources, securing highly specialized personnel, a decline in the working population, and It has become clear that this is a significant business risk against the backdrop of demands for sustained wage increases. In 2023, “Outflow of excellent human resources or inability to retain them” ranked 4th globally and 5th among Japanese companies.
At the time of the previous survey, it was not in the top 10 either globally or in Japan, indicating a change in management’s awareness and efforts toward human capital management in recent years. With the borderless economy, digital transformation, efforts to improve employee experience and reskilling, and wage increases due to inflation, how to recruit and retain talented human resources is an unavoidable issue for companies. The aging of skilled engineers in the manufacturing industry and specialized human resources in the service industry is also thought to be a contributing factor to the ranking. Tomoyuki Yamashita, head of Aon’s Talent Solutions Japan, said: “Even if it is possible to partially compensate for the decline in the working population by improving operational efficiency through artificial intelligence, digitalization, etc., in order for companies to increase their competitiveness and achieve sustainable growth, they will need to improve their human resources. Recruiting and retaining the best talent through proactive investment is essential. Lack of talent and specialized skills inhibits innovation and increases supply chain and business interruption risks. In addition to reviewing the lifetime employment system and seniority system that have existed in Japanese companies for a long time to a more balanced personnel system, remuneration, and evaluation system that allows talented people to be treated, we are also adapting to diversifying lifestyles from the perspective of securing human resources. We also need to consider welfare systems and wellbeing measures.”
Japan Top 10 Risks
Disruption of supply chains and distribution
Rapid changes in market trends
Cyber attack/information leak
business interruption
Outflow of excellent human resources or inability to secure them Weather/natural disasters
Economic recession/delayed recovery
geopolitical instability
Environment, Society and Governance (ESG)/Corporate Social Responsibility (CSR) Product liability/product recall
Global Top 10 Risks
Cyber attack/information leak
business interruption
Economic recession/delayed recovery
Outflow of excellent human resources or inability to secure them Changes in laws and regulations
Disruption of supply chains and distribution
Price fluctuations/lack of raw materials/resources
Reputational damage/brand damage
Innovation/failure to meet customer needs
Intensifying competition
About the Global Risk Management Survey
Aon targeted 2,842 decision makers, including risk managers, executives, finance personnel, and human resources/recruitment personnel at large, medium-sized, and small businesses in 61 countries and regions around the world and 16 industries. , the survey was conducted online for one month from June to July 2023. Conducted every two years since 2007, the survey provides data and insights to help you make valuable decisions in an increasingly volatile and complex business environment.
The main findings of the Global Risk Management Survey and the responses from Japanese companies can be viewed here
(https://www.aon.com/2023-global-risk-management-survey/japan). Aon in Japan (https://www.aon.com/japan/) provides solutions to companies’ issues related to risk management, reinsurance, employee medical care and welfare, and human resources systems. We support the stable continuation and growth of business and support valuable decisions.
About Aon Aon plc (https://www.aon.com/) (NYSE: AON) is in the business of helping people make meaningful decisions that protect and enrich the lives of people around the world. Aon Group provides advice and solutions to customers in more than 120 countries and regions around the world, enabling them to make meaningful decisions with clear evidence and confidence to protect and grow their businesses. LinkedIn (https://www.linkedin.com/company/aon), X
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Disclaimer
The information contained in this document is for general guidance and information purposes only and is not intended to address the circumstances of any particular person or entity. While Aon strives to provide accurate and timely information and uses reliable sources, Aon does not guarantee the accuracy, adequacy, completeness, or fitness for any purpose of the contents of this document. , does not make any representations or financial guarantees, and assumes no responsibility for any loss suffered in any way in reliance on this document. Furthermore, we do not guarantee the accuracy of the information contained in this document at the time of receipt or in the future. Any person or entity should seek appropriate professional advice and conduct their own investigation before acting on any such information. More details about this release:
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