Cyber exposure, supply chain vulnerabilities, and currency movements are shaping the risk agenda for Japanese corporates, with natural catastrophe and product liability exposures also prominent, according to the Japan findings of Aon plc’s 2025 Global Risk Management Survey.
The survey, which collected responses from nearly 3,000 risk managers, C-suite executives, and senior leaders in 63 countries, points to a Japanese risk profile influenced by digitalisation, cross-border trade, and regional geopolitical pressures.
For organisations based in Japan, “Cyber Attacks/Data Breach” is the highest-ranked business risk and aligns with the global number one. “Supply chain or distribution failure” is in second place, reflecting concerns about how geopolitical developments, extreme weather, and policy changes can affect production, logistics, and inventory flows. Liability and financial-market risks are also central to the Japanese results. “Product Liability/Recall” and “Exchange Rate Fluctuation” appear among the key threats, consistent with Japan’s manufacturing base and its role in global value chains. Aon’s data shows that 63.6% of respondents in Japan reported losses linked to product liability or recall events, while 47.6% reported losses arising from exchange rate movements.
Tatsuya Yamamoto, CEO of Japan at Aon, commented: “Japanese organisations are operating in an environment of unprecedented complexity. Cyber, weather, and geopolitical risks continue to be acute challenges for Japan businesses, underscoring the need for robust risk management frameworks and agile strategies. As market trends shift and competition intensifies, vigilance and adaptability will be key.” He added that how risks interact is becoming a greater focus for boards and risk functions. “The interconnectedness of risks – where a cyberattack can disrupt supply chains or geopolitical volatility can trigger regulatory changes – demands a holistic, proactive approach to resilience,” he said.
Japan’s top 10 business risks for 2025 are listed as:
The survey indicates that a higher share of Japanese companies report having formal risk structures compared with the global average. In Japan, 74.7% of respondents say they have a dedicated risk management and insurance department, versus 68.4% globally. In addition, 75.3% measure the total cost of insurable risk, and 83.3% report that this cost is increasing.
At the same time, the findings suggest that many organisations are still developing quantitative capabilities and analytics-based approaches. For the three highest-ranked risks in Japan, reported levels of assessment and planning vary:
For insurers, brokers, and other intermediaries, the discrepancies between perceived risks and formal planning point to areas where risk assessment, stress testing, parametric structures, and analytics could become more integrated into capital allocation and programme design.
Japanese respondents expect cyber and climate-related themes to remain significant through 2028, alongside geopolitical and market-driven issues. The top five projected business risks for Japan are:
Shinichi Kandatsu, head of Commercial Risk Solutions for Japan at Aon, commented: “Cyber and weather-related risks continue to lead the rankings as top concerns for Japanese businesses today and in the future, with geopolitical volatility also ranking among the top five risks across both periods. This trend reflects the growing instability across the region, with implications for supply chains, regulatory environments, and financial performance. In today’s fast-moving market, leveraging advanced data analytics is essential for businesses to anticipate emerging risks, optimise risk capital, and build resilience.”
The Japan results are part of broader shifts across Asia captured in Aon’s regional 2025 Global Risk Management Survey findings released in November. Across Asia, “Cyber Attacks/Data Breach” also holds the top position, but “Increasing Competition” and “Exchange Rate Fluctuation” have moved up the rankings, reflecting concern over market rivalry and financial volatility.
“Increasing Competition” has entered the top three risks for Asia, rising from eighth place in 2023. “Weather/Natural Disasters,” ranked eighth in Asia, appears more prominently in the region than in other parts of the world, indicating the operational and supply chain impact of climate-related events. Talent-related pressures also feature in the regional data. “Failure to Attract and Retain Top Talent” is among Asia’s top 10 risks but is absent from the global top 10, pointing to region-specific labour and skills constraints. According to Aon, 52.1% of Asia-based organisations reported losses from “Exchange Rate Fluctuations,” 45.4% from “Economic Slowdown,” 43.6% from “Increasing Competition,” and 30.4% from “Failure to Attract and Retain Top Talent.”
