Increased geopolitical tensions in recent years have had the potential to catch companies flat-footed and disrupt their businesses, leading the Japanese government as well as the private sector to bolster initiatives around economic security.

As a result, more Japanese firms are establishing divisions meant to specifically deal with risks stemming from changing geopolitical dynamics, saying that it is increasingly critical for them to be able to make decisions faster and adapt to new circumstances.

An example of a firm adopting this mentality is Mitsubishi Electric, which is one of the major Japanese firms to have created a division with “economic security” in its name.