Atma Insights | Japan Tendencies in Risk Taking

Japan Tendencies in Risk Taking

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How Risk Avoidance Affects Business Culture in Japan

Find out more about kiken kaihi, or cautious risk avoidance, in Japanese culture and how this principle affects diplomacy and bargaining in Japan.

The Japanese tend to be very cautious and thorough in their decision-making and have a relatively low willingness and ability to tolerate risk. Kiken kaihi, or risk avoidance, is a key principle in Japanese diplomacy and bargaining. Ineffective risk management has been largely the result of government regulations and interference. Traditionally, the Japanese have avoided disclosing losses and challenges, but the ongoing economic situation has made this more difficult. Learn how global management practices have impacted restructuring efforts.