Investors have urged Japanese companies to improve their disclosures about how they will respond to and be prepared for unforeseen circumstances, such as the conflict in the Ukraine, pandemic-related supply chain disruptions, and rising tensions between the US and China over Taiwan. This is why they are taking this action to strengthen their risk management capabilities.
According to Kyohei Yabu, research manager at the Japan External Trade Organization, Japanese businesses frequently struggle with how to stay compliant with laws that are constantly changing in the two greatest economies in the world.
Video Courtesy: Al Jazeera Englishu201cThe Japanese businesses are increasingly at risk of becoming stuck between the two sides, he claimed.
According to a PwC Advisory research released in September, compared to 11% a year earlier, almost a third of Japanese-listed businesses with revenues of more than 500bn ($3.9bn) highlighted geopolitics in their annual reports.
According to Kazuhide Ueno, an attorney at the law firm TMI Associates, Japanese companies have been slower to respond to economic security and geopolitical issues than US and European companies. Corporate security initiatives have evolved into a factor for investors to consider when evaluating a company’s value, according to Ueno. His research indicates that more Japanese businesses are mentioning economic security in their annual reports.
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As US-China relations rise, Japanese companies increase their intelligence gathering.
By tirupatinews
